Foreign holdings of US Treasuries rise to a record in June

Aug 15 (Reuters) - Foreign holdings of U.S. Treasuries rose to a record high in June, while Japan's U.S. government bond assets were the lowest since October, data from the Treasury Department showed on Thursday.

Holdings of U.S. Treasuries rose to $8.210 trillion in June from $8.132 trillion in May.

Japan's Treasuries' holdings decreased to $1.118 trillion from $1.128 trillion the previous month. Japan remains the largest foreign holder of U.S. Treasury securities. China, which is No. 2, saw its holdings rise to $780 billion from $768 billion in May.

Market participants have been focused on Japan's Treasury holdings due to the country's recent interventions to boost the Japanese yen. Japanese authorities appeared to intervene to sell dollars and buy yen in late April and May and again in July, which was likely financed in part by sales of Japan's U.S. government debt portfolio.

Treasury yields ended the month lower in June, though the moves were relatively muted compared with yield drops in July and so far in August as traders adjust to weaker economic data and the likelihood that the Federal Reserve is getting closer to cutting interest rates. (Reporting by Karen Brettell; editing by Jonathan Oatis)