Foreign holdings of US Treasury securities fell for a fourth consecutive month, suggesting some buyers may be worried about the impact of budget fights in Washington.

The Treasury Department yesterday [Offshore Company Incorporation]said total foreign holdings fell 0.2 percent in July to US$5.59 trillion. Holdings have lost US$110 billion since hitting a record high in March.

Still, the two largest buyers stepped up purchases in July. China boosted its holdings 0.1 percent to US$1.28 trillion following a 1.7 percent drop in June. Japan raised its holdings 4.8 percent to US$1.14 trillion.

Treasury debt held by foreig-ners is up 3.9 [HongKong Richful  - Hong Kong Company Formation, Offshore Company Incorporation]percent from a year ago. The recent declines come as Congress is at odds over how to fund the government past September and whether to raise the nation's US$16.7 tri-llion borrowing limit.