Summary Box: China reducts Treasury debt holdings in May as total holdings rise

Summary Box: China trims US Treasury debt holdings

FOREIGN HOLDINGS: Net purchases of long-term U.S. securities, a category that covers government debt and corporate debt, totaled $35.4 billion following gains of $81.5 billion in April and $141.4 billion in March.

TREASURY SECURITIES: Foreign holdings of U.S. Treasury debt edged up a small 0.1 percent to $3.96 trillion, as China, the biggest foreign holder of U.S. Treasury debt, cut its holdings by $32.5 billion.

OUTLOOK: Economists believe demand for U.S. government and corporate debt will remain strong as the European debt crisis prompts investors to look for safety.