Saudi adds $4 bln to its US Treasury holdings by end of 2023, highest in three years

Saudi Arabia added nearly $4 billion to its US Treasury holdings by the end of last year, taking its stockpile to the highest level since early 2021.

The amount stood at nearly $132 billion in December, according to the latest figures from the Treasury Department. Other top US government debt holders, including China and Germany, also increased holdings in the world’s safest asset, potentially taking advantage of attractive yields.

Benchmark 10-year Treasury yields fell by about 45 basis points in December, while the US dollar weakened about 2.1 percent during the same month, according to the Bloomberg Dollar Spot Index.

US Treasuries are traditionally known for being safe assets, especially at times of uncertainty in the global economy. The world’s largest oil producer has been adding to its holdings every month since August.

Overall, foreign holdings of Treasuries rose in December to around $8.1 trillion.