What’s going on here?
Canadian investors cast their eyes southward in March, upping their stake in US bonds and stocks while pulling back from non-US foreign debts and domestic securities.
What does this mean?
In March, Canadians snapped up $15.6 billion in foreign securities, mostly in US bonds and government money market instruments, shedding $1.8 billion from other foreign debts. They reined in foreign equity investments to $7.0 billion from February’s $27.8 billion, with $5.0 billion funneled into US stocks. Meanwhile, foreign investors cut Canadian securities by $4.2 billion, including a notable $12.0 billion reduction in Canadian shares affecting the banking, energy, and mining sectors. Inflows into Canadian bonds hit $11.9 billion, mainly federal bonds, while outflows were seen from federal government enterprises. The 1.9% dip in the S&P/TSX composite index in March reflected these shifts, compounded by the Bank of Canada’s…
