Foreign holdings of US Treasury securities drop 1.6 percent in July to $6.08 trillion

Markets Associated Press

Foreign holdings of U.S. Treasury securities fell again in July as China, the biggest foreign owner of U.S. government debt, cut back its holdings.

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The Treasury Department says in its monthly report that total holdings dropped 1.6 percent to $6.08 trillion, down from $6.18 trillion in June. The July decline marked the third drop in the past four months.

China reduced its holdings by 2.4 percent in July to $1.24 trillion. Japan, the No. 2 holder of U.S. Treasurys, boosted its holdings by .03 percent to $1.20 trillion.

Despite the recent declines, foreign demand for U.S. Treasury securities is expected to remain strong this year. They are considered one of the world's safest investments.