WASHINGTON - China and Japan, the two biggest foreign holders of Treasuries, reduced their positions of US government debt in January as a measure of demand for American financial assets fell to a six-month low.

China remained the biggest owner abroad of Treasuries, even as its holdings dropped by a net $5.8 billion to $889 billion, according to data released on Monday in Washington by the United States Treasury Department .

Japan cut its holdings in January by $300 million to $765.4 billion, the report showed.