RIYADH: Saudi Arabia’s holdings of US Treasury securities rose 1.56 percent in June to $142.5 billion, as the Kingdom bucked the global trend.
The holdings by Saudi Arabia increased from $140.3 billion in May, although the latest figure is below the 2026 high of $160.4 billion seen in February, according to US Treasury Department data.
On a year-on-year basis, Saudi Arabia’s holdings increased 9.19 percent in June, reflecting continued demand for US government debt despite changing market conditions.
The Kingdom’s increase is in contrast to the global foreign holdings total, which was down 0.78% month on month to stand at $9.3 trillion, reflecting changes in how major investors and reserve managers are positioning their portfolios amid shifting market conditions.
Commenting on the global drop, Tony Hallside, CEO of STP Partners told Arab News: “The month-on-month decline in foreign holdings of US Treasuries should be viewed in the context of how global investors, including official reserve managers, balance liquidity, yield and diversification rather than as a simple indication of declining confidence in US government debt.”
He added that Treasuries remain one of the deepest and most liquid markets globally and continue to play an important role in institutional and sovereign portfolios.
Countries including Saudi Arabia invest in US Treasuries for their perceived safety, liquidity, diversification benefits, and alignment with economic ties to the US.
Saudi Arabia’s Treasury holdings comprised about $108.55 billion in long-term securities, or 76 percent of the total, and $33.99 billion in short-term securities, accounting for 24 percent.
Saudi Arabia leads region
Saudi Arabia remained the 17th-largest foreign holder of US Treasury securities in June and the largest holder in the Gulf Cooperation Council and the wider Middle East. The UAE ranked 19th, with holdings of $114.8 billion.
No other countries from the GCC were featured in the top 20 list of US Treasury holders.
Global holdings
Overall foreign holdings of US Treasuries declined in June to $9.3 trillion from $9.37 trillion in May, while increasing by 2.3 percent compared with the same month in the previous year.
“Shifts in interest-rate expectations, currency considerations and reserve-management priorities can lead large investors to adjust their exposure from month to month. The fact that some major holders reduced their positions while others increased theirs illustrates how differently investors are positioning within US fixed income,” said Hallside.
He added: “Attention will continue to center on the direction of monetary policy, the US fiscal outlook and the relative attractiveness of Treasury yields.”
According to the data, Japan was the largest investor in US Treasury securities in June, with holdings totaling $1.12 trillion.
The UK held $939.9 billion, while Mainland China reduced its position to $633.4 billion from $659.3 billion.
Other major holders at the end of June included Belgium with $482.5 billion, Canada with $459.6 billion, and the Cayman Islands with $453.1 billion.
Luxembourg followed with $434.2 billion, while France held holdings worth $389.9 billion, Ireland held $353.5 billion, and Taiwan held $302.5 billion.
Foreign official institutions held $3.78 trillion of Treasuries in June, down from $3.85 trillion in May. Of that total, official holdings of Treasury bills were $360.6 billion and holdings of Treasury bonds and notes were $3.42 trillion.
The Treasury International Capital data offers a monthly snapshot of global demand for US government debt, tracking holdings by foreign governments and investors. The data is widely monitored as an indicator of international capital flows, reserve management strategies and confidence in the world’s largest sovereign bond market.
