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Norway's massive sovereign wealth fund has proposed significantly reducing its U.S. Treasury holdings by roughly $80 billion as part of a broader overhaul of its bond investments. The proposal would reduce U.S.
Treasury holdings from 34.1% to 21.9% of the fund's bond benchmark. This change would amount to a reduction of nearly $80 billion from the approximately $215 billion in U.S. Treasuries the fund held at the end of June, according to Reuters calculations.
The fund would offset this reduction with a corresponding increase in other U.S. bonds to broaden its bond investments. The proposal comes amid data showing that Treasury holdings attributed to several major foreign holders, including China, Brazil, India, and Japan, have fallen over the past year, while others like Belgium, the U.K., and Ireland have increased. Norway's move is significant due to the fund's size and the prominence of U.S.
Treasuries in its portfolio. Total foreign holdings of U.S. Treasury securities increased by about 2.3% from June 2025 to June 2026, despite individual declines among major holders.
Other pension funds, such as ABP (Dutch) and AkademikerPension (Danish), have also reduced their U.S. Treasury holdings for similar reasons. The changes have not yet been implemented, and Norges Bank will present an implementation plan after Norway's Ministry of Finance has taken a position on its recommendations.
Source: Newsweek
