WASHINGTON – 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.