Foreign investment in Canadian securities amounted to $29.5 billion in May, mainly purchases of government debt instruments. At the same time, Canadian investors increased their holdings of foreign securities by $4.4 billion, led by investments in US debt instruments.
As a result, international transactions in securities generated a net inflow of funds of $25.1 billion in the Canadian economy, a second consecutive large monthly net inflow of funds.
Non-resident investment in Canadian bonds was $20.8 billion in May, the largest investment since March 2015. Record acquisitions of provincial government bonds, largely new issues denominated in foreign currencies, were the main contributors to investment activity in May. In addition, non-resident investors purchased $6.4 billion of corporate bonds and $4.3 billion of federal government bonds. Canadian long-term interest rates were down by seven basis points, a fourth straight monthly decline.
Market Focus
Quotes
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.