Summary Box: China Cuts US Treasury Holdings

CHINA CUTS BACK: China, the largest buyer of U.S. Treasury securities, reduced its holdings in December 0.4 percent to $892 billion. That's the second straight drop after four months of increases.

OTHERS INCREASE: Governments and private investors in Britain and Japan more than made up the difference. Britain's holdings jumped 5.8 percent to $541.3 billion, while Japan's rose by 0.7 percent to $883.6 billion.

WORLD STILL BUYING: Overall, foreign holdings of Treasury securities rose 0.6 percent in December to $4.37 trillion. Overseas investors, an important source of financing, are still buying U.S. government debt, even as deficits climb.