Foreign holdings of U.S. Treasury securities fell for a third consecutive month in June, the government said Thursday, as both China and Japan have cut back. The Treasury Department said that total foreign holdings declined to $5.6 trillion in June, a drop of 1 percent from May. Total foreign holdings fell 0.9 percent in May and 0.3 percent in April after hitting an all-time high of $5.7 trillion in March. China, which is the largest foreign buyer of Treasury debt, cut back its holdings by 1.7 percent in June to $1.28 trillion. Japan, the second largest foreign purchaser, cut its holdings by 1.8 percent to $1.08 trillion. Treasury debt held by foreigners is up 5.4 percent from a year ago, suggesting that global demand remains high despite the prolonged battles in Washington over budget deficits.
