Saudi Arabia’s holdings of US Treasury bonds fell to the lowest level in more than six years.
The country sold more than $3 billion in US government debt in June, offloading the securities for a third consecutive month to bring its holdings to $108.1 billion, according to Treasury Department data. The neighboring UAE sold nearly $4 billion.
Echoing the sell-off, China dumped $11.3 billion in June, bringing it to the lowest level since mid-2009.
Japan and the UK were among the biggest buyers of what’s widely perceived as one of the safest assets to own. But their own economies are continuously pressured by a multitude of factors, and some experts believe that they can barely continue to buy at the same pace.
Falling demand for Treasuries could make it much harder for the US to continue borrowing money as it has historically done.