Saudi Arabia and UAE Reduce US Treasury Holdings in March
Saudi Arabia cuts its US Treasury holdings by $10.8 billion and the UAE reduces its portfolio by $5.8 billion, official data shows.
RIYADH: Saudi Arabia's United States Treasury holdings decreased by $10.8 billion to $149.6 billion in March, while the United Arab Emirates reduced its portfolio by $5.8 billion to $114.1 billion, according to official data.Despite the monthly decline, Saudi Arabia's portfolio remained higher than the $131.6 billion recorded a year earlier, as reported by the US Treasury Department.
The Kingdom's holdings consisted of $107 billion in long-term Treasuries and $42.6 billion in short-term Treasuries, positioning it 17th among foreign holders of US Treasuries.The UAE also reduced its holdings from $119.9 billion in February.
On a year-on-year basis, the Emirates' Treasury portfolio rose from $104.3 billion in March 2022, ranking it 19th globally among foreign holders.
The UAE's portfolio included $48.6 billion in long-term Treasuries and $65.5 billion in short-term Treasury securities.The changes in Gulf holdings occur amid heightened volatility in global bond and energy markets as investors reassess the outlook for inflation and interest rates following stronger-than-expected US inflation data and expectations that the Federal Reserve could maintain elevated interest rates for longer.
Benchmark 10-year Treasury yields have climbed above 4.5 percent, putting pressure on global bond markets and prompting some reserve managers to rebalance their holdings.Japan remains the largest foreign holder of US Treasury securities at $1.19 trillion, followed by the UK with $926.9 billion and China with $652.3 billion.
The Cayman Islands hold $459.4 billion, Belgium holds $454 billion, Canada holds $439.4 billion, and Luxembourg holds $432 billion.Among notable monthly changes, Japan recorded the largest decline among the top holders, falling by $47.7 billion, followed by China with a decrease of $41 billion.
The UK posted one of the largest increases, rising by $29.6 billion, while the Cayman Islands increased by $16.4 billion.
Belgium slightly decreased from $454.7 billion in February to $454 billion in March.Total foreign holdings of US Treasury securities stood at $9.35 trillion in March, down from $9.49 trillion in February, according to Treasury International Capital data.
The total was up from $9.05 trillion in March 2022.
The Kingdom's holdings consisted of $107 billion in long-term Treasuries and $42.6 billion in short-term Treasuries, positioning it 17th among foreign holders of US Treasuries.The UAE also reduced its holdings from $119.9 billion in February.
On a year-on-year basis, the Emirates' Treasury portfolio rose from $104.3 billion in March 2022, ranking it 19th globally among foreign holders.
The UAE's portfolio included $48.6 billion in long-term Treasuries and $65.5 billion in short-term Treasury securities.The changes in Gulf holdings occur amid heightened volatility in global bond and energy markets as investors reassess the outlook for inflation and interest rates following stronger-than-expected US inflation data and expectations that the Federal Reserve could maintain elevated interest rates for longer.
Benchmark 10-year Treasury yields have climbed above 4.5 percent, putting pressure on global bond markets and prompting some reserve managers to rebalance their holdings.Japan remains the largest foreign holder of US Treasury securities at $1.19 trillion, followed by the UK with $926.9 billion and China with $652.3 billion.
The Cayman Islands hold $459.4 billion, Belgium holds $454 billion, Canada holds $439.4 billion, and Luxembourg holds $432 billion.Among notable monthly changes, Japan recorded the largest decline among the top holders, falling by $47.7 billion, followed by China with a decrease of $41 billion.
The UK posted one of the largest increases, rising by $29.6 billion, while the Cayman Islands increased by $16.4 billion.
Belgium slightly decreased from $454.7 billion in February to $454 billion in March.Total foreign holdings of US Treasury securities stood at $9.35 trillion in March, down from $9.49 trillion in February, according to Treasury International Capital data.
The total was up from $9.05 trillion in March 2022.
