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

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.

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.

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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.