Foreign investors buy record amounts of Canadian government debt, lowering Carney’s borrowing costs

By By Fergal Smith – Reuters

TORONTO, June 30 (Reuters) – Foreign investors including pension funds, insurance companies and hedge funds are buying Canada’s federal bonds in record amounts, easing the cost ‌of funding Prime Minister Mark Carney’s expensive nation-building projects but potentially introducing more volatility to Canada’s debt market.

The most recent data for Government of Canada bonds shows that foreign investors purchased C$27.7 billion ($19.5 billion) in April, a record monthly total, while their share of the bonds outstanding climbed to an all-time high of 43%.