Manager of Norway’s $2tn oil fund proposes slashing US Treasury holdings - Financial Times

Nicolai Tangen, the chief executive of Norges Bank Investment Management, has reportedly proposed a significant reduction in the fund’s allocation to US Treasuries. As the manager of the world’s largest sovereign wealth fund, valued at roughly $2 trillion, Tangen’s suggestion carries substantial weight in global fixed-income markets. The proposal appears rooted in concerns over the rising fiscal burden of US debt and the potential for prolonged currency volatility, though the specific mechanics of any rebalancing have not been detailed.

For investors, this development highlights a growing institutional debate about the safety and liquidity of US government bonds. While Norway’s fund is a major holder, its scale means any actual shift could influence yields and the dollar’s valuation over time. However, it is crucial to note that this remains a proposal, not a policy change. The fund’s board and the Norwegian finance ministry would need to approve any alteration, leaving ample room for deliberation. Market participants should watch for official statements from Norges Bank or the ministry, as well as any broader trend among global central banks and sovereign funds reassessing their dollar exposure. For now, the news serves as a reminder that even the most traditional safe-haven assets are subject to strategic review by the world’s largest investors.