Foreign demand for long-term U.S. financial assets dropped sharply in April, as both China and Japan reduced their holdings of Treasury securities. The Treasury Department reported Monday that net purchases of stocks, notes, and bonds obtained by foreigners fell to $11.2 billion in April from $55.4 billion the previous month. China, the biggest holder of U.S. Treasury securities, reduced its holdings slightly in April to $763.5 billion. Japan, the second-biggest holder of Treasury securities, reduced its holdings slightly to $685.9 billion. China's holdings of Treasury securities represent about 10 percent of America's publicly held debt. Treasury Secretary Timothy Geithner traveled to Beijing earlier this month partly to assure Chinese leaders that the Obama administration is determined to gain control over the exploding U.S. budget deficit, which is expected to reach a record $1.84 trillion this year. The Obama administration has said its aggressive moves to end the recession and the global economic crisis will temporarily inflate the budget deficit, but it hopes to reduce the deficit as soon as economic conditions allow.