China cut its US Treasury-bill reserve by $3.4 billion to $797.1 billion in August, though it remained the largest foreign holder of US T-bills.

Japan, the second largest holder of the US government debt, however, has boosted its Treasury securities from $724.5 billion in July to $731 billion. The overall demand for long-term US financial assets rose in August, with foreigners buying $28.6 billion more in assets than they sold.