Kuwait witnessed a reduction of 16.3% in its US Treasury bond holdings during the first half of the year, a move that resulted in a decrease of $7.9 billion. This brought its total holdings to $40.6 billion by the end of June, down from $48.5 billion in December 2022, reported Alanba Daily.
On an annual basis, the decrease amounted to $5.4 billion, marking an 11.7% decline from June 2022’s $46 billion. Monthly data reveals a $800 million or 1.9% reduction from May’s $41.4 billion. Kuwait’s strategy entails diversification, with short-term bonds valued at $2.81 billion and the majority in long-term bonds at $37.76 billion. This shift aligns with changes in bond returns and shifts in Kuwaiti investments on US stock exchanges.
In the Gulf region, Saudi Arabia’s holdings dropped to $108.1 billion from $111.3 billion in May, with $99.83 billion in long-term and $8.28 billion in short-term bonds. The UAE also witnessed a reduction to $65.2 billion from $69 billion in May, split between $45.46 billion in long-term and $19.73 billion in short-term bonds.
Globally, Japan maintained its leading position with $1,105.6 billion in US bonds, followed by China with $835.4 billion and the United Kingdom with $672.3 billion. The total volume of US Treasury bonds reached $7,562.9 billion at the close of June, reflecting an annual increase of $146 billion or 1.96%.