Foreign holdings of US Treasury securities fell in August

Markets Associated Press

Foreign holdings of U.S. Treasury securities fell again in August as China, the biggest foreign owner of Treasury debt, trimmed its holdings for the third straight month.

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The Treasury Department says total foreign holdings dropped 0.8 percent to $6.20 trillion in August following a 0.5 percent decline in July.

China reduced its holdings 2.7 percent to $1.19 trillion after declines of 1.8 percent in July and 0.3 percent in June. Japan, the second largest foreign holder of Treasury debt, reduced its holdings by 0.9 percent to $1.14 trillion in August.

The Congressional Budget Office forecasts the national debt, now at $19.7 trillion, will increase by $8.6 trillion over the next decade, underscoring America's need to maintain high foreign demand for the rising levels of Treasury debt.