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.
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Why It Matters
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.
What Norway Is Doing
People exiting the Norway Central Bank offices on Bankplassen, Oslo, Norway, March 3, 2022. (Getty) | Getty Images
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 Reuters calculations.
The changes have not yet been implemented. Norges Bank said it would present an implementation plan after Norway's Ministry of Finance has taken a position on its recommendations and that any adjustment to a new benchmark should be made gradually.
Countries Reducing U.S. Treasury Holdings
Newsweek compared Treasury Department data for June 2025 and June 2026. Dollar changes cited below are Newsweek calculations based on those figures.
China
China recorded the largest year-over-year decline among the major foreign holders individually listed by the U.S. Treasury Department, based on Newsweek's analysis of Treasury Department data.
Treasury holdings attributed to mainland China fell from $731.4 billion in June 2025 to $633.4 billion in June 2026, a decline of $98 billion.
The decline is part of a much longer trend. China's Treasury holdings stood at about $1.3 trillion in 2011, meaning its holdings have fallen by more than half from that level.
Still, China remains one of the world's largest foreign holders of U.S. Treasury securities.
Brazil
Treasury holdings attributed to Brazil fell from $215.4 billion in June 2025 to $168.4 billion in June 2026, a decline of $47 billion.
That was the second-largest decline among the major foreign holders individually listed by the department, based on Newsweek's analysis of the figures.
India
Treasury holdings attributed to India fell from $227.4 billion in June 2025 to $186.4 billion in June 2026, a decline of $41 billion.
Japan
Japan remained the largest foreign holder of U.S. Treasuries in June despite reducing its holdings over the previous year.
Treasury holdings attributed to Japan fell from about $1.155 trillion in June 2025 to about $1.117 trillion in June 2026, a decline of $38.1 billion.
Switzerland
Treasury holdings attributed to Switzerland fell from $300.6 billion in June 2025 to $284.9 billion in June 2026, a decline of $15.7 billion.
Based on Newsweek's analysis of the figures, China, Brazil, India, Japan and Switzerland recorded the five largest declines among the major foreign holders individually listed by the Treasury Department between June 2025 and June 2026.
Pension Funds Reduce Treasury Holdings
ABP
Dutch pension fund ABP has also reduced its exposure to U.S. Treasuries.
Bloomberg reported in January that ABP had reduced its U.S. Treasury holdings by about 10 billion euros, or roughly $11.7 billion, to 19 billion euros in the six months through September 2025, based on fund disclosures and reporting by Dutch broadcaster NOS.
AkademikerPension
Danish pension fund AkademikerPension sold approximately $100 million in U.S. Treasuries in early 2026, according to the fund.
AkademikerPension said the decision was rooted in concerns about U.S. government finances.
Investment Director Anders Schelde said the fund had historically used U.S. government bonds for liquidity and risk-management purposes but that concerns about U.S. public finances had prompted it to seek an alternative.
The fund said the move was an investment decision rather than a political response to tensions between Denmark and the United States.
AkademikerPension later updated its statement to say that as of February 1, it no longer held U.S. Treasuries.
The Treasury Department's country-level figures should not be interpreted as a precise record of investment decisions made by individual foreign governments.
Some Major Foreign Holders Increased Their Treasury Holdings
The declines were not universal.
Treasury holdings attributed to the United Kingdom increased from $855.6 billion in June 2025 to $939.9 billion in June 2026, a rise of $84.3 billion.
Based on Newsweek's analysis of the Treasury figures, that was the largest increase among the major foreign holders individually listed by the department over the 12-month period.
Belgium's holdings increased by $52 billion over the same period, while Ireland's rose by $43 billion, according to Treasury Department data.
Singapore recorded an increase of roughly $31 billion, while Canada's holdings increased by about $21 billion.
Foreign Treasury Holdings Overall Are Up
Despite substantial reductions among some major holders, foreign investors collectively held more U.S. Treasury securities in June 2026 than they did a year earlier.
Treasury Department data show total foreign holdings increased from about $9.094 trillion in June 2025 to $9.299 trillion in June 2026.
Based on those figures, that represents an increase of approximately $205.4 billion, or about 2.3 percent.
The Key Takeaway for Americans
Norway's move does not mean Americans suddenly face higher rates. The U.S. Treasury market is enormous, and the fund plans to make changes gradually while reinvesting much of the money into other U.S. bonds.
The bigger concern is if many large investors start doing the same thing. Then the U.S. government could face noticeably higher borrowing costs, which could eventually filter through to mortgages, loans, and federal finances.
What Happens Next
Norway's proposed changes have not yet been implemented and would not result in an immediate sale of tens of billions of dollars in U.S. Treasuries.
Norges Bank said any adjustment to a new benchmark should be carried out gradually because of potential market impact and transaction costs.
The bank said it would return with a specific implementation proposal after Norway's Ministry of Finance has taken a position on its recommendations.
Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas
