Kuwait decreases US bond holdings

Kuwait decreased its holdings of US Treasury bonds by 16.3%, totaling $7.9 billion during the first half of this year. This brought their holdings down to $40.6 billion by the end of June, compared to $48.5 billion at the close of December 2022. Furthermore, Kuwait’s annual possession of US bonds decreased by $5.4 billion, a decline of 11.7%, from $46 billion at the end of June 2022.

As outlined in the data released on the US Treasury website, their possession dropped by $800 million, or 1.9% on a monthly basis, from $41.4 billion at the conclusion of May to $40.6 billion at the conclusion of last June. Kuwait has opted for diversification in its US bond portfolio, allocating $2.81 billion to short-term bonds, while the larger portion remains in long-term bonds, amounting to $37.76 billion.

Successful shifts in Kuwaiti investments within US bonds are observable alongside changes in bond yields and shifts in Kuwaiti investments on US stock exchanges. Regarding Gulf states’ holdings of US bonds, their strategy in June leaned towards selling. The Kingdom of Saudi Arabia’s investments dwindled to $108.1 billion, a decrease from $111.3 billion at the end of May. Among these, $99.83 billion were in long-term bonds, and $8.28 billion were in short-term bonds.

Similarly, the UAE’s investments reduced to $65.2 billion by the end of June, down from $69 billion at May’s close. Out of this, $45.46 billion were in long-term bonds, and $19.73 billion were in short-term bonds. Globally, Japan continued its streak for the forty ninth consecutive month, securing the top position by possessing US bonds worth $1,105.6 billion by the end of June, a slight drop from May’s $1,096.8 billion.