By Chris Oliver
HONG KONG (MarketWatch) -- China reduced its holdings of U.S. Treasury securities for a second straight month in December, though it maintained its position as the largest holder of U.S. government debt, ahead of Japan. China's holdings of Treasurys in December totaled $891.6 billion, compared to $895.6 billion in November, according to the Treasury International Capital report, released Tuesday. The drop is the second straight month China has reduced its holdings from October's recent high of $906.8 billion. Japan, the second-largest holder of U.S. government debt, raised it holdings of U.S. government debt to $883.6 billion in December from $877.2 billion in November