Norway's Oil Fund Proposes Selling Roughly $80B in U.S. Treasurys

JumpCrisscross•about 2 hours ago

“Norges Bank Investment Management said in a letter to the country’s finance ministry on Tuesday that it recommended reducing the weighting of government debt in the fund’s benchmark bond index from 70 per cent to 50 per cent.

…

A lower Treasury allocation for Norway’s Government Pension Fund Global would be offset by purchases of riskier fixed-income products, particularly debt such as mortgage-backed securities.

…

These MBS are largely backed by government agencies, meaning Norway’s exposure to the risk of a US government default is only being reduced modestly. They do, however, offer slightly higher yields than Treasuries because of the risk that mortgages are repaid early” [1].

[1] https://www.ft.com/content/ecc15aa6-6e7b-409d-8753-2fb6aadd0...

d--b•about 2 hours ago

Because they want to be exposed to riskier instruments, not because they see any kind of risk in financing the american debt...

toomuchtodo•about 1 hour ago

Indeed, but as US treasuries yield go, so do mortgage rates. Do mortgage backed securities carry more risk than US treasuries? Maybe not. Those with mortgages are highly incentivized to continue to pay their mortgages every month, while the US government doesn't appear willing to stop growing the debt. The quote in JumpCrisscross' comment explains this:

> These MBS are largely backed by government agencies, meaning Norway’s exposure to the risk of a US government default is only being reduced modestly. They do, however, offer slightly higher yields than Treasuries because of the risk that mortgages are repaid early."

TLDR More yield for similar risk profile while pushing up mortgage rates over time (all US consumer debt is priced off of US treasury yields; less demand for treasuries will push up their yields). Watch the 10Y and 30Y curves for where the market thinks rates are going.

(think in systems)

bushbaba•about 1 hour ago

If the U.S. defaults it’s likely the economy would go to shit or see high inflation. Either way your f’d

toomuchtodo•about 1 hour ago

Yeah, I'm just watching where on the fucked meter we're currently at. Happens slowly, then all of a sudden.

Trump says he will cease trading with top partners unless Fed lowers rates - https://www.cnn.com/2026/09/04/economy/trump-trade-fed - September 4th, 2026

josefritzishere•about 1 hour ago

There's a big sell off looming.

Norway's Oil Fund Proposes Selling Roughly $80B in U.S. Treasurys

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