> ## Content Index > Fetch the complete content index at: https://poolside.ghost.io/llms.txt > Use this file to discover other available public pages before exploring further. # Norway's $2.3T Sovereign Wealth Fund Looks to Add U.S. Mortgage Bonds - URL: https://poolside.ghost.io/norways-2-3t-sovereign-wealth-fund-looks-to-add-u-s-mortgage-bonds/ - Published: 2026-09-04T22:47:08.000Z - Updated: 2026-09-04T22:47:08.000Z - Description: Norges Bank Investment Management manages Norway's Government Pension Fund Global — the world's largest sovereign wealth fund - Author: Jason Taira - Tags: International --- **Poolside's Read** Rotation, not exit — For the first time, Norway proposes moving approximately $80 billion *away* from U.S. Treasuries and *toward* mortgage bonds. > The Fed, is the market's largest owner of Mortgage-Backed Securities (MBS) – holding approximately $1.9 trillion as of [mid-2026](https://fred.stlouisfed.org/series/WSHOMCB?ref=poolside.ghost.io). Any shift would be phased in gradually to limit market impact, and realistically not before well into 2027\. Against a [$31.5 trillion Treasury market](https://www.bloomberg.com/news/newsletters/2026-09-04/norway-mulls-a-treasury-bond-sale-that-could-reach-75-billion?ref=poolside.ghost.io), the sum is marginal. --- ## Headline Norway's $2.3 trillion sovereign fund sent its finance ministry a [letter](https://www.nbim.no/en/news-and-insights/submissions-to-ministry/2026/the-government-pension-fund-global--analyses-and-assessments-of-the-investment-strategy-for-bonds/?ref=poolside.ghost.io) on September 1, proposing it trim U.S. government debt positions across its benchmark fund and — for the first time — folding in U.S. agency mortgage-backed securities. > Norges Bank Investment Management manages Norway's Government Pension Fund Global — the world's largest sovereign wealth fund It recommended cutting the government-bond slice of its bond benchmark from 70% to 50%, with U.S. Treasuries, the single biggest holding, taking the deepest cut. In dollars, that's roughly $80 billion pared from about $215 billion in Treasuries. 70% → 50%Government bonds in the fund's benchmark 34.1% → 21.9%U.S. Treasuries' share of the bond index \~$80BTrimmed from its Treasury position \~$215BTreasuries held at end of June Proposal only — not a sale. Figures per NBIM's Sept. 1 letter and Reuters estimates. --- ## Global bond selloff Government borrowing costs jumped worldwide this week in a broader global bond selloff: - Japan's 10-year crossed 3% for the first time since 1996 - The U.K. gilt neared 5.3% (highest since 2008) - The German Bund hit its highest since 2011 as Europe joined in. - The U.S. 10-year Treasury yield hit 4.8% on Tuesday, with the 30-year at 5.27%. --- ## What happens next in Norway 1. **Ministry reviews the letter** Norges Bank IM awaits Norway's finance ministry response before anything moves. 2. **Formal recommendations in January** The proposals fold into the fund's recommendations to the ministry. 3. **Spring white paper & parliament** Debated in the annual white paper, then a ministry recommendation and a parliamentary hearing. 4. **Gradual implementation, 2027 at the earliest** If approved, any cuts phase in slowly to limit market and transaction costs. --- Sources: [CNBC](https://www.cnbc.com/2026/09/04/global-bond-selloff-inflation-risk.html?ref=poolside.ghost.io) · [CNN](https://www.cnn.com/2026/09/01/investing/global-bond-market?ref=poolside.ghost.io) · [Reuters](https://www.reuters.com/business/finance/whats-behind-selloff-world-bond-markets-2026-09-01/?ref=poolside.ghost.io) · [Wall Street Journal](https://www.wsj.com/finance/investing/europe-joins-global-bond-selloff-as-middle-east-hostilities-lift-oil-prices-fca5d94a?ref=poolside.ghost.io) · [CNBC — El-Erian](https://www.cnbc.com/2026/09/04/el-erian-government-bond-selloff.html?ref=poolside.ghost.io) · [Bloomberg](https://www.bloomberg.com/news/newsletters/2026-09-04/norway-mulls-a-treasury-bond-sale-that-could-reach-75-billion?ref=poolside.ghost.io) · [Federal Reserve](https://www.federalreserve.gov/monetarypolicy/policy-normalization.htm) · [St. Louis Fed (FRED)](https://fred.stlouisfed.org/series/WSHOMCB?ref=poolside.ghost.io), plus [Norges Bank Investment Management's letter of 1 September 2026](https://www.nbim.no/en/news-and-insights/submissions-to-ministry/2026/the-government-pension-fund-global--analyses-and-assessments-of-the-investment-strategy-for-bonds?ref=poolside.ghost.io) to Norway's Ministry of Finance. Figures as reported at publication; the proposal remains subject to review.