UPDATE 1 — Foreign US Treasury holdings rise in August, but China cuts to 2008 low

(Adds details throughout) NEW YORK, Oct 16 (Reuters) — Foreign holdings of US Treasuries edged higher in August after two months of declines, data from the Treasury Department showed on Friday, led by gains in holdings from the UK and Canada. Holdings of US Treasuries rose to $9.331 trillion in August, from $9.248 trillion in the previous month. They hit a record $9.487 trillion in February this year. Compared with a year earlier, Treasuries owned by foreigners were up less than 1%. China's holdings, however, dropped to their lowest since August 2008. Here are some details: Holdings from Japan fell to $1.068 trillion in August, down 3.2% from $1.103 trillion in July. These holdings dropped for a fourth straight month. Japan, however, remained the largest non-US holder of Treasuries, with holdings hitting a peak of $1.325 trillion in November 2021. Holdings from the United Kingdom, the second-largest foreign holder of Treasuries, topped the trillion-dollar mark for the first time. The UK posted a 1.1% increase in holdings to $1.009 trillion in August, from $998.3 billion the previous month. The UK is widely viewed as a major custody hub for global investors, and its flows are often