Norwegian sovereign wealth fund may cut $80 billion US Treasury holdings; high-rated mortgage securities expected to become new favorites - Bitget
Norwegian sovereign wealth fund may cut $80 billion US Treasury holdings; high-rated mortgage securities expected to become new favorites - Bitget
Source: Bitget
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DW NOTE
Norway's sovereign wealth fund—the world's largest, with $1.7 trillion in assets—is reportedly preparing to dump $80 billion in Treasuries in favor of mortgage-backed securities. This is not a technical rebalancing. When the largest and most conservatively managed pool of sovereign capital decides U.S. government debt is no longer the appropriate risk-free anchor, that is a vote of no confidence in fiscal credibility. The 10-year yield at 4.77% already reflects market anxiety about a $1.9 trillion deficit running at 6% of GDP. Norway's exit accelerates the repricing.