Foreign Investors Scoop Canadian Bonds
Posted: Jul 19 2011 Topic:
Foreign investment in Canadian securities rose in May to the highest level in a year, nearly doubling to $15.4 billion, with the largest concentration in Canadian government bonds, Statistics Canada reported Monday.
Non-resident investment in Canadian federal and provincial bonds, as well as those issued by government-owned enterprises, rose to $11.1 billion in May, the federal agency reported.
In May, net new issues of federal government bonds reached their highest level in nearly two years.
Foreign investors also bought $3.3 billion in money-market instruments and $1 billion in stocks, but sold private corporate bonds for the first time since August 2009.
Canadian investors, meanwhile, bought $6 billion in foreign stocks but sold $2.5 billion in foreign debt instruments, mostly bonds.