Foreigners Cut Canadian Bond Holdings by Record C$19 Billion
Foreign holdings of Canadian bonds fell by a record in June as investors retained the proceeds of maturing government debt.
The C$19 billion ($18.4 billion) decline in bonds was led by a C$10.6 billion drop in government-issued debt and another C$8.83 billion reduction in government-owned company bonds, Statistics Canada said today from Ottawa.
The drop “occurred against the backdrop of a sharp decline in the overall supply of these instruments over the month,” the agency’s report said.
Investors also added C$3.22 billion of stocks in June and C$387 million of money-market paper, narrowing the decline in foreign holdings of Canadian securities to C$15.4 billion, the largest since October 2007.
The drop contrasted with a Bloomberg survey of four economists that had a median estimate of C$7.25 billion in net purchases.
Canadians bought C$3.69 billion of foreign securities in June, according to today’s report.
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