Norges Bank Investment Management recommended reducing its weighting to government bonds within its benchmark bond index to 50% from 70%, with U.S. Treasuries, the biggest holding, getting the biggest cut. ^[1] The manager of Norway's $2.3 trillion sovereign wealth fund proposed significantly cutting its exposure to U.S. Treasuries as part of a wider shake-up of its bond investments to improve returns. ^[2] Norway's sovereign wealth fund, Norges Bank Investment Management (NBIM), proposed reducing its U.S. Treasury holdings from 34.1% to 21.9% of its portfolio. ^[3] Norges Bank IM said it would await the ministry's response, and any changes would be done gradually to limit market impact and transaction costs. ^[4] The proposed changes would mean cutting nearly $80 billion from the fund's current holdings of about $215 billion of U.S. Treasuries as of the end of June. ^[5] In the first quarter of 2025, NBIM swung to a $40 billion loss as investors turned risk-off. ^[6] NBIM recommended reducing the government subindex of its bond holdings from 70% to 50% to provide sufficient liquidity during market turbulence. ^[7] The fund plans to increase its holdings of non-government U.S. fixed income, such as corporate bonds, to 27.6% from 16.2%. ^[8]