4 Sep 2026

Norway’s $2.3 trillion sovereign wealth fund could be preparing a major shift away from US Treasuries.

Norges Bank Investment Management has proposed cutting government bonds from 70% to 50% of its fixed-income benchmark. The potential impact: • Around $106 billion less in global government debt • An estimated $80 billion reduction in US Treasuries • More capital redirected toward higher-returning areas of the bond market The fund currently invests just under 26% of its assets in fixed income. The timing is significant. Government debt is surging. Inflation risks are returning. And despite repeated US Treasury interventions, long-term yields remain near multiyear highs. This does not mean Norway is abandoning Treasuries. But when one of the world’s largest investors questions the traditional government-bond allocation, markets should pay attention. The message is clear: sovereign debt may no longer offer the risk-return profile it once did. Source: Financial Times

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