Saudi Arabia’s US Treasury securities holdings declined to $126.9 billion in January, a $10.6 billion decrease from December. This adjustment represents a 7.71 percent drop and retains Saudi Arabia’s 17th position among global holders. Japan remains the largest investor in US Treasuries, reflecting ongoing international financial dynamics.
In January, Saudi Arabia’s holdings of US Treasury securities totaled $126.9 billion, reflecting a decrease of $10.6 billion from December. This decline corresponds to a 7.71 percent month-on-month drop, which may indicate market fluctuations or a strategic portfolio adjustment in response to changing global economic conditions.
Despite this reduction, Saudi Arabia maintained its position as the 17th largest holder of US Treasury securities, remaining the sole representative from the Gulf Cooperation Council in the top 20 rankings. The US Department of the Treasury reported a net TIC outflow of $48.8 billion in January, indicating overall shifts in foreign investment in US securities.
The report detailed that Saudi Arabia’s portfolio consists of 83 percent in long-term bonds, amounting to $105.3 billion, and 17 percent in short-term bonds, totaling $21.6 billion. Additionally, during this period, foreign residents increased their long-term US security holdings by $200 million, with significant purchases made by private investors.
Among the top holders of US Treasury bonds, Japan led with $1.07 trillion in January, followed by China with $760.8 billion and the United Kingdom with $740.2 billion. Other notable nations include Luxembourg, Belgium, and Canada, with respective holdings contributing to the diverse landscape of foreign investment in US Treasuries.
In summary, Saudi Arabia’s US Treasury holdings have experienced a notable decrease, impacting its position among global investors. The country’s strategic adjustments reflect broader economic conditions. Meanwhile, Japan continues to lead in Treasury holdings, highlighting the competitive engagement of various countries in this essential financial market.
Original Source: www.arabnews.com
