Foreign holdings of U.S. Treasury securities dip

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Washington • Foreign buyers of U.S. Treasury securities trimmed their holdings in July after hitting a record level in June. The two biggest purchasers, China and Japan, both cut back.

The Treasury Department said Tuesday in its monthly report that foreign holdings dipped 0.3 percent in July to $6.0 trillion, down from a record $6.01 trillion in June.

China, the top foreign buyer of U.S. Treasury debt, reduced its holdings by 0.3 percent to $1.26 trillion. Japan, the No. 2 buyer, trimmed its holdings by 0.04 percent to $1.22 trillion.

Foreign central banks are big holders of U.S. Treasuries, which are viewed as one of the world's safest investments. In July, government holdings increased 0.09 percent to $4.11 trillion.

Foreign demand for Treasury debt is expected to remain strong this year.