Norway Buying U.S. Treasury Securities

We note that “Norway” during the last 14 months have been heavily buying U.S. Treasury Securities. What entity of “Norway” this is, the Central Bank, the oil fund (Pension fund) or other entity is not given by the US Treasury. The buying might have reversed this summer, needs to be followed.

Something is going on though. This buying contributes to lowering the interest on these bonds. The only other significant buying increase seems to be U.K. Is this a coordinated intervention effort?

“Norway” has been buying USD 43 billion worth of U.S. Treasury Securities since June 2007.
At current USD 1 : NOK 5.6 this is 240 billion kroner. If it is the oil fund (as we think it is) this means that some 10-12% of the oil fund is invested in U.S. Treasury Securities, from 0% one year ago.

Measured in NOK the investment has been successful though, as we have seen a decline in US interest rates (the bonds then increase in value) and the recent August/September 14% rally in the dollar.
See U.S. Treasury Statistics.

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