WASHINGTON (AP) — Foreign holdings of U.S. Treasury securities fell in May for a second straight month even though China, the largest foreign owner of Treasury debt, boosted its holdings.
In its monthly report, the Treasury Department said Thursday that total holdings edged down 0.1 percent in May to $6.13 trillion after a bigger 0.6 percent decline in April.
China boosted its holdings by 0.5 percent to $1.27 trillion in May, but Japan, the second biggest foreign owner of Treasury debt, trimmed its holdings 0.1 percent to $1.21 trillion.
The demand for U.S. Treasury securities, considered one of the world's safest investments, is expected to remain strong this year.
Much of the debt is owned by foreign central banks. The holdings by foreign governments rose 0.7 percent in May to $4.16 trillion, 68 percent of the total foreign holdings.