The Norwegian Sovereign Wealth Fund said on Thursday that its portfolio lost 30 billion US dollars in the third quarter due to income from holding positions under the pressure on interest rates. The Norges Bank Investment Authority, which manages this $2.3 trillion fund, said that the book return loss for the quarter was 278 billion kroner. About 70% of the fixed income portfolio of the Norges Bank Investment Authority is allocated to treasury bonds, and the rest is invested in corporate bonds. The global bond market came under pressure in the third quarter. The Federal Reserve and other major central banks began a cycle of interest rate hikes, compounded by rising market concerns about inflation and the size of government debt, and treasury bond yields rose sharply. Norges Bank Investment Authority has a fixed return on investment of -3.5%. Fund management says this is the main reason for the decline in overall earnings.

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