US debt holdings increase in August

China's holdings of US treasuries rose for a third consecutive month in August to the highest in a year on the back of rising foreign exchange reserves and expectations that the greenback may appreciate further.

The country's total holdings of US bonds, notes and bills rose by $34.5 billion on a monthly basis in August to $1.2 trillion, according to data from the US Treasury Department on Tuesday.

Japan, which overtook China as the largest holder of US treasuries last October, cut its holdings by $11.4 billion to $1.1 trillion in August.