A number of gravestones were also toppled over at the cemetery in Rochdale Road, Blackley, north Manchester, police said.
Two 13-year-old boys have been arrested on suspicion of committing a racially aggravated public order offence.
They have been bailed until July 25, pending further inquiries, Greater Manchester Police (GMP) said.
Officers branded the attack "sickening" earlier this week and said they believe the graves were vandalised sometime between 4pm on June 22 and 3.30pm the following day.
Inspector Mike Reid said: "As you might expect this crime caused an outcry within the local community.
"Residents have been fully supportive and co-operative of our investigation and as a direct result of their assistance we have been able to make these two arrests.
"I want to stress that this investigation is at an early stage and we of course continue to appeal to anyone with information about those responsible for this appalling crime to call us.
"Such mindless criminal damage will not be tolerated in our communities and our aim is to ensure those responsible are identified, charged and brought to justice in due course."
Anyone with information should call police on 101 or the independent charity Crimestoppers, anonymously, on 0800 555 111.