Saudi Arabia bolstered its US Treasury holdings by nearly $4 billion by the close of last year, reaching the highest level since early 2021. According to the Treasury Department's latest data, the kingdom's stockpile stood at nearly $132 billion in December. This move mirrors a broader trend among top US government debt holders, with countries like China and Germany also increasing their holdings in what is widely considered the world’s safest asset, potentially attracted by favorable yields.

Throughout December, benchmark 10-year Treasury yields experienced a decline of approximately 45 basis points, coinciding with a 2.1% weakening of the US dollar, as indicated by the Bloomberg Dollar Spot Index. Such movements in the market underscore the appeal of US Treasuries as a haven asset. Saudi Arabia, the world’s largest oil producer, has consistently augmented its Treasury holdings each month since August, demonstrating a strategic approach to portfolio management. Foreign holdings of Treasuries collectively rose to approximately $8.1 trillion in December, reflecting sustained international interest in US government debt.