Norway's sovereign wealth fund is proposing to reduce its government debt holdings by approximately $75 billion, a move that could impact US securities the most. This action revives memories from January when foreign pension funds were anticipated to reduce US debt holdings amid policy risks. While a broad selloff did not materialize then, bond yields have since surged due to inflation, debt size, and corporate securities flooding the market.

The proposal by Norges Bank Investment Management implies a decrease of about $75 billion in Treasury holdings. NBIM argues they already own enough government bonds to satisfy liquidity needs and that long-horizon investors should harvest a broader set of fixed-income risk premia. Meanwhile, some of the world's biggest money managers have rebuilt their gold holdings after prices dropped, betting long-term drivers will endure despite the Fed's more assertive inflation stance.

Asset manager Amundi bought bullion expecting it to return to $5,000 an ounce by year-end, though greater visibility over the Fed's interest-rate path is needed before adding to recent purchases. Gold remains less favored when yields rise as it does not pay interest.