“The activity in May was mainly in Canadian government bonds and private corporate paper, and it was moderated by a divestment in Canadian equity securities,” StatsCan said.
Specifically, foreign investors added $19.6 billion worth of Canadian bonds in May — including $12.9 billion in federal debt and $5.8 billion of provincial government bonds.
Through the first five months of the year, foreign investors have added $110 billion of Canadian bonds, up from $57.6 billion for the same period in 2023, StatsCan reported.
Additionally, investors acquired $10.9 billion of Canadian money market paper, primarily instruments issued by the banks.
The strong flows into fixed-income securities were tempered by investors selling $9.5 billion worth of Canadian equities in May. StatsCan said this marked the largest monthly divestment since June 2022.
The divestment activity in May, “was driven by redemptions of Canadian…
