Foreign investors were also keen to acquire Canadian securities in June according to official stats
Canada’s international trade in foreign securities was buoyant in June according to new figures from Statistics Canada.
Canadian investors snapped up $14.4 billion in foreign securities in the month, their largest investment for seven months, while foreign investors acquired $12.6 billion in Canadian securities.
With a net outflow of funds of $1.9 billion, the second quarter of 2023 ended with a net inflow of $21.8 billion to the Canadian economy.
The top target for Canadian investors was US government bonds with exposure up $8.9 billion. This followed two months of divestment and reflects an increase in US long-term interest rates.
Meanwhile, $4.6 billion was directed at non-US foreign bonds, mostly foreign governments and international organizations, but Canadians cut their exposure to foreign equities (mostly non-US) by $1.6 billion.
Canada seen as good bet
Foreign investors focused on Canadian government money market instruments in June, adding $8.4 billion worth to the record $11.4 billion they acquired in May, as Canadian interest rates were hiked with short-term rates at their highest for more than 20 years.
Foreign investors acquired a total $36.5 billion in Canadian securities in the second quarter.
Non-resident investors also bought $8.1 billion in Canadian bonds, mostly new issuances of foreign currency bonds by banks, but reduced their exposure to Canadian equities by $3.9 billion following a sharp slowdown in their acquisition in the previous month and more than erasing the $3.7 billion acquired in April and May.
