The
Government Pension Fund Global, managed by Norges Bank, recommends dropping
government bonds from 70 percent to 50 percent of its bond index, slashing
about $106 billion overall with the biggest hit to U.S. Treasuries held at
$199-215 billion as of mid-2026.
Leaders Ida Wolden Bache and Nicolai Tangen say this keeps liquidity strong while shifting to higher-yield options like corporate bonds and mortgage-backed securities.
The gradual change aims to boost returns amid weak government bond performance and high global debt, with U.S. dollar exposure dipping only slightly.