UPDATE 1-Foreigners dump record amount of Canadian bonds in June

Fri Aug 16, 2013 8:38am EDT
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* Marks biggest divestment since October 2007

* Foreigners' holdings of bonds down by record C$19.01 bln

* June saw marked decline in suppy of government bonds

OTTAWA, Aug 16 (Reuters) - Foreigners reduced holdings of Canadian securities by a net C$15.41 billion ($14.96 billion) in June, their biggest divestment since October 2007, Statistics Canada reported on Friday.

Foreigners' holdings of bonds fell by a record C$19.01 billion, the first divestment in this category this year. It was mainly in bonds of the federal government and its business enterprises and, to a lesser extent, provincial governments, the agency said.

"This occurred against the backdrop of a sharp decline in the overall supply of these instruments over the month," it added.

Foreigners did add C$3.22 billion in Canadian equities.

For the first half of 2013, foreign investment in Canadian securities was still up C$15.84 billion, though this was down by roughly half from the cumulative total for January to May. The net purchases in the first six months included C$16.12 billion in bonds.