U.S. Treasury holdings diverge among major economies and Arab investors

Tuesday 18 August 2026 - 19:25

By: Azzat Manal

U.S. Treasury holdings diverge among major economies and Arab investors

Holdings of U.S. Treasury securities changed in different directions among major foreign investors in June 2026, with Japan, the United Kingdom and China reducing their positions while Saudi Arabia increased its holdings. The latest figures also show a contrasting trend between Saudi Arabia and the United Arab Emirates.

According to data from the U.S. Department of the Treasury, Saudi Arabia’s holdings of U.S. Treasury securities rose to approximately $142.5 billion at the end of June, up from $140.3 billion in May. The increase amounted to around $2.2 billion in one month.

The United Arab Emirates, by contrast, reduced its holdings from $118.6 billion in May to approximately $114.8 billion in June, representing a monthly decline of about $3.8 billion.

At the global level, foreign holdings of U.S. Treasury securities decreased to around $9.299 trillion in June from $9.371 trillion a month earlier. Despite the monthly decline, the total remained higher than a year earlier.

Japan continued to rank as the largest foreign holder of U.S. Treasury securities. Its holdings fell to approximately $1.116 trillion in June, compared with $1.143 trillion in May.

The United Kingdom also reduced its position, with holdings declining to around $939.9 billion from $948.6 billion in the previous month. China recorded a more pronounced reduction, with its holdings falling by roughly 4% to $633.4 billion, compared with $659.3 billion in May.

Movements in Treasury holdings can reflect a range of factors, including changes in foreign-exchange reserves, interest-rate expectations, currency management and broader investment strategies. A monthly decline does not necessarily indicate a complete withdrawal from U.S. government debt.

Russia’s holdings remained extremely limited compared with those of the world’s major investors. Treasury data showed Russian holdings falling to about $27 million in June, from $29 million in May. Long-term securities accounted for approximately $24 million, while short-term holdings remained at around $3 million.

Russia’s exposure to U.S. government securities has declined dramatically over the past decade. Its holdings reached a historical peak of about $176.3 billion in October 2010 before beginning a prolonged decline, particularly from 2018 onward.

The latest figures illustrate the continued importance of U.S. Treasury securities in global financial markets, while also highlighting differences in the reserve-management strategies of major economies and Gulf countries.

For Arab investors, Saudi Arabia’s June increase contrasts with the reduction recorded by the United Arab Emirates. The two countries nevertheless remain significant holders of U.S. government debt, reflecting the role of dollar-denominated assets in their international financial portfolios.