Saudi Arabia Increases US Treasuries Holdings

Friday, 17 August, 2018 - 11:15
London - Asharq Al-Awsat

Saudi Arabia increased its holdings of US government debt by around $2.8 billion in one month, reaching $164.9 billion in June 2018.

It was the highest level reached by the Kingdom since July 2015, data from the Treasury Department showed, allowing Saudi Arabia to rank 10th among the largest foreign holders of US government securities, according to Argaam.

As for the UAE, its holdings dropped around $400 million, reaching $59.6 billion end of June. Kuwait also reduced ownership of Treasuries to $42.9 billion, a drop of $1 billion.

Globally, data showed that China and Japan reduced their holdings of US government debt in June as foreigners dumped the most Treasuries in a single month since late 2016

Overseas investors sold $48.57 billion in Treasuries in June, compared with the $26.7 billion in purchases in May.

China’s holdings of US government debt slipped to $1.179 trillion, the lowest level since February and down from $1.183 trillion in May.

Japan’s ownership of Treasuries decreased to $1.030 trillion in June, the lowest since October 2011. Its Treasuries stake totaled $1.049 trillion in May.

China and Japan are the two biggest foreign holders of US government securities.

Meanwhile, foreign investors unloaded $27.033 billion in US equities in June, following $26.58 billion in sales in May, Treasury data showed.

On the other hand, they purchased corporate bonds for a fifth consecutive month, adding $10.24 billion in June.

Overall, overseas investors bought $114.47 billion in US assets in June, more than the $69.16 billion purchased in May. 

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