UPDATE 1-Foreigners raise investment in Canadian gov't bonds in Sept

Fri Nov 16, 2012 8:42am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Foreign investment jumps to highest since May at C$13.92 bln

* Canadians buy most "maple bonds" since 2007

OTTAWA Nov 16 (Reuters) - Foreigners added C$13.92 billion ($13.92 billion) in Canadian securities to their portfolios in September, the biggest amount since May as investors focused on government bonds, according to Statistics Canada data on Friday.

Canadian investment in foreign securities hit a six-month high of C$6.03 billion in September, most of it in stocks but also helped by the biggest purchases of Canadian dollar-denominated foreign bonds, or "maple bonds", since October 2007.

The foreign investment almost doubled that of August, when foreigners invested C$7.56 billion in Canadian markets, the agency's revised figures showed.

Overall in September, foreigners bought C$10.63 billion in debt securities but in contrast to 2011 they showed more interest in federal bonds than in federal Treasury bills.

Their C$9.11 billion investment in Canadian bonds, up from C$4.72 billion in August, was led by government bonds on the secondary market. Money market purchases totaling C$1.52 billion were down sharply from C$3.49 billion in the previous month.

Lured by banking shares, foreigners returned to the Canadian stock market to buy C$3.29 billion after selling off equities the prior month. Nearly all of the activity was on the secondary market.