Foreign holdings of U.S. 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 says total foreign holdings declined 0.2 percent in July to $5.59 trillion. Holdings have declined $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 $1.28 trillion following a 1.7 percent decline in June. Japan increased its holdings 4.8 percent to $1.14 trillion.

Treasury debt held by foreigners is up 3.9 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 $16.7 trillion borrowing limit.