Foreign investors are buying Canadian debt at record levels.
Investors from outside the country bought $49 billion of Canadian debt securities in April, the largest monthly purchase on record. That included $15.8 billion in federal government bonds, as well as $10.2 billion in federal government money market instruments such as treasury bills, both records. Foreign investors also bought $25.4 billion of Canadian corporate bonds in April.
The record purchase of Canadian debt instruments indicates that Canada continues to be viewed as a safe haven by foreign investors.
The unprecedented buying coincided with a hefty issuance of federal debt by Prime Minister Justin Trudeau’s government to fund spending to support the domestic economy during the coronavirus pandemic.
Foreigners were less keen on Canadian stocks in April, selling a net $4.9 billion of Canadian equities and investment fund shares in the month, according to Statistics Canada data.
