FX.co ★ Foreigners Increase Holdings of Canadian Securities

In June 2025, foreign investors increased their holdings of Canadian securities by C$0.71 billion, marking a reversal from the upwardly revised C$6.29 billion divestment observed in the previous month. This move was contrary to market expectations, which had predicted a divestment of C$4.75 billion. The modest increase was largely fueled by a continued interest in Canadian bonds, with foreign investors acquiring C$6.95 billion, despite a rise in long-term yields during this period. A significant portion of these investments was in corporate bonds, totaling C$5.6 billion. Conversely, foreign investors reduced their holdings of money market instruments for the second consecutive month, with a decrease of C$3.23 billion. Additionally, investments in Canadian equities also saw a reduction for the second month in a row, dropping by C$0.3 billion, despite the S&P TSX Composite reaching new highs during this time.