Norway's massive sovereign wealth fund has proposed significantly reducing its U.S. Treasury holdings as part of a broader overhaul of its bond investments. The proposed changes would reduce the fund's U.S.
Treasury holdings by roughly $80 billion, according to Dow Jones Newswires calculations. The proposal does not mean the fund is pulling nearly $80 billion out of U.S. investments overall. Norges Bank said the reduction in U.S. government bonds would be offset by a roughly corresponding increase in other U.S. bonds as part of an effort to broaden the fund's bond investments.
The proposal from the world's largest sovereign wealth fund comes as U.S. Treasury Department data show Treasury holdings attributed to several major foreign holders, including China, Brazil, India and Japan, have fallen over the past year, while others have increased, like Belgium, the U.K. and Ireland. Norway's proposal is significant because of the fund's sheer size and the prominent place U.S.
Treasuries hold in its bond portfolio. While Treasury holdings attributed to several major foreign holders declined over the past year, total foreign holdings moved in the opposite direction, rising about 2.3 percent from June 2025 to June 2026. Newsweek reached out to the U.S.
Treasury Department via email outside regular business hours for comment. Norway's Government Pension Fund Global, the world's largest sovereign wealth fund, has proposed reducing its exposure to U.S. Treasuries as part of a broader overhaul of its bond investments, which Norges Bank says will be offset by a roughly corresponding increase in other U.S. bonds as part of an effort to broaden the fund's bond investments.
Under the proposal, U.S. government bonds would fall from 34.1 percent to 21.9 percent of the fund's bond benchmark. The 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 calculations.
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