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 per cent 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 per cent to $1.26 trillion. Japan, the No. 2 buyer, trimmed its holdings by 0.04 per cent 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 per cent to $4.11 trillion.
Foreign demand for Treasury debt is expected to remain strong this year.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.