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00:03Norway's $2.3 trillion sovereign wealth fund has proposed reducing its allocation to government
00:09bonds, a move that would primarily cut its holdings of U.S. treasuries, according to CNBC.
00:15Norges Bank Investment Management recommended lowering the government share of its bond
00:20portfolio to 50% from 70%. The proposal would gradually reduce treasury holdings to 21.9%
00:28from 34.1% while increasing exposure to non-government U.S. fixed income,
00:33including corporate bonds and mortgage-backed securities. NBM said the changes could improve
00:40returns while maintaining sufficient liquidity during market stress. Economist Mohamed El-Aryan
00:46said the size of Norway's potential treasury reduction is limited, but the move could signal
00:52that traditional buyers of U.S. government debt are becoming less reliable.
00:55For all things money, visit Benzinga.com.
