Global investor holdings of Canadian federal government debt fell a record CAD15 billion in September as they declined to re-invest proceeds of maturing securities, the federal statistics office said Friday.
The decline was led by a record CAD9.2 billion drop in holdings of government paper, Statistics Canada said. Canadian investors also reduced investments in their own country amid what had been the G7's most aggressive rate-hike campaign, buying a record CAD12.9 billion of foreign bonds. (See: MNI INTERVIEW: Steady CPI Dents 50BP BOC Hike Case- Ex Adviser)
The total investment outflow from Canada of CAD31.8 billion was the largest since December 2000, which may explain some of the Canadian dollar's recent weakness.