Saudi holdings of US Treasury bonds hit 9-month high with $117bn in September

Saudi holdings of US Treasury bonds reached $117.1 billion in September, up from $112 billion in August, further elevating its position in the global financial market.

This notable increase, which marks a nine-month high for the Kingdom, has propelled the region to the 17th spot among the largest holders of US Treasury bonds as of September.

A closer look at the investment distribution reveals a strategic focus, with $102.1 billion, or 87 percent of the total investment, allocated to long-term bonds.

Meanwhile, short-term bonds accounted for $15 billion, comprising 13 percent of the Kingdom’s US Treasury bond investments.

This move signifies Saudi Arabia’s growing influence in international financial markets, highlighting a keen understanding of leveraging sovereign wealth to secure and strengthen the Kingdom’s global economic position.

Moreover, Saudi Arabia is the only Arab and Middle Eastern country among the top 20 major holders of US Treasury securities.

The Kingdom held the 18th spot in July, experiencing a 1 percent increase after a three-month decline, reaching $109.2 billion.

Furthermore, Saudi Arabia sustained its growth trajectory in October with a $3 billion increase compared to the previous month.

At the top of the list, Japan reached $1.08 trillion in September, reflecting a steep decline compared to the $1.11 trillion recorded the previous month.

China followed suit with $778 billion during the month, also marking a decrease from $805 billion in October.

The UK secured the third spot, experiencing a decline from $698 billion in October to $668.9 billion in September.

Furthermore, South Korea, in the 18th spot, observed a decrease from $117.8 billion in October to $112.9 billion in September.

Germany followed, with an increase from $96.4 billion in October to $102.3 billion in September.

Bermuda secured the last position with $88.5 billion in September, compared to $86.9 billion the month before.

The total foreign treasury holders reached $7.6 trillion in September, marking a decrease from $7.7 trillion the previous month.

In the last month, Saudi Arabia’s central bank reported a decrease in foreign security investments, recording an 11.5 percent year-on-year drop in September, amounting to SR997.9 billion ($266 billion).