Foreign holdings of U.S. Treasury securities decreased in June.

According to U.S. Treasury Department data released on the 17th local time, foreign holdings of U.S. Treasuries stood at $9.299 trillion in June, down from $9.371 trillion in May.

However, this represented a 2.3% increase compared to the same period last year.

China, the third-largest holder of U.S. Treasuries outside of the United States, saw its holdings drop by 4% to $633.4 billion in June from $659.3 billion in May.

Compared to the same period last year, its holdings decreased by more than 13%.

The June holdings mark the lowest level since September 2008 ($618.2 billion).

Japan, the largest holder, saw its holdings decrease by 2.3% to $1.116 trillion in June from $1.143 trillion in May.

The UK, the second-largest holder, saw a 1% decline to $939.9 billion in June from $948.6 billion in May.

The UK is widely known as a major custody hub for government bonds among global investors, and its capital flows are evaluated as an indicator to gauge hedge fund investment positions.

(Photo: Getty Images)