Foreign demand for long-term U.S. financial assets rose in August even though China reduced its holdings of Treasury securities. Foreigners bought $28.6 billion more in assets than they sold in August. That followed a net increase of $15.3 billion in July and $90.2 billion in June. The Treasury Department is auctioning record amounts of debt to cover a budget deficit estimated to have reached a record $1.41 trillion. Some economists worry that if overseas buyers do not keep buying U.S. debt, interest rates will rise. China reduced its holdings by $3.4 billion to $797.1 billion but still remained the biggest foreign holder of Treasury securities. Japan, the second-biggest foreign holder, increased its Treasury securities by $6.5 billion to $731 billion.