Foreign investment in Canadian securities amounted to $29.5 billion in May
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.
- U.S building permits and housing starts rose more than expected in January
- Chicago Business Barometer rose to 67.6 in December, up from 63.9
- U.S import and export prices rose more than expected in January
- Canadian manufacturing sales declined 0.3% to $55.5 billion in December