Foreign demand for U.S. Treasury securities dropped in April for the first time in more than a year, the government said Friday, as China and Japan both trimmed their holdings. The Treasury Department said that total foreign holdings fell 1.2 percent in April from March to $5.67 trillion. China, which is the largest foreign buyer of Treasury debt, reduced its holdings 0.4 percent to $1.26 trillion, while Japan, the second-largest buyer, cuts its holdings 1.2 percent to $1.1 trillion. Still, even with the reductions, Treasury debt held by foreigners is up 8.6 percent from a year ago. The gain indicates that overseas investors are still buying U.S. debt, despite sharp debates in Congress over reducing federal deficits.
