Foreign holdings of U.S. Treasuries fell for a second straight month in September, data from the U.S. Treasury Department showed on Tuesday, as China's holdings fell to the lowest level since February 2017.

Foreign investors held $7.071 trillion in U.S. Treasuries in September, down from $7.083 trillion the previous month, the Treasury Department report said.

Japan and China's Treasury holdings fell in September to $1.276 trillion and $1.061 trillion, respectively. Japan remains the largest holder of U.S. Treasuries.