{"id":77261,"date":"2026-08-18T11:58:23","date_gmt":"2026-08-18T11:58:23","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2026\/08\/18\/posthaste-foreign-investors-are-snapping-up-canadian-debt-in-a-record-bond-binge-but-there-are-risks\/"},"modified":"2026-08-18T11:58:23","modified_gmt":"2026-08-18T11:58:23","slug":"posthaste-foreign-investors-are-snapping-up-canadian-debt-in-a-record-bond-binge-but-there-are-risks","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2026\/08\/18\/posthaste-foreign-investors-are-snapping-up-canadian-debt-in-a-record-bond-binge-but-there-are-risks\/","title":{"rendered":"Posthaste: Foreign investors are snapping up Canadian debt in a record bond binge, but there are risks"},"content":{"rendered":"

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Foreigners can\u2019t seem to get enough of Canadian debt. <\/p>\n

According to the latest international securities transactions data out yesterday, foreign investors\u2019 \u201cvoracious appetite\u201d for Canadian bonds continued in June. <\/p>\n

National Bank of Canada strategists Taylor Schleich and Warren Lovely said while Ottawa is focusing on building up the domestic economy to make Canada less reliant on the rest of the world, a different dynamic is going on in the bond market. <\/p>\n

\u201cCanadian bond issuers are \u2018outsourcing\u2019 like never before,\u201d they said. <\/p>\n

The $35 billion in net buying by non-residents in June was nearly triple the prior record of $13 billion in June 2024 and brings the year-to-date total to $185 billion, more than 50 per cent higher than the next biggest year in 2020. <\/p>\n

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Foreign investors are buying both government and corporate bonds, but mostly Government of Canada. So much so that non-residents have not only absorbed all of Ottawa\u2019s net issuance, but also the run-off from the Bank of Canada\u2019s balance sheet, said the strategists. <\/p>\n

Non-residents now own 45 per cent of the domestic GoC market, more than residents who own 42.9 per cent. <\/p>\n

This isn\u2019t the first time that has happened. Foreign investors owning a bigger share occurred briefly in 2021, 2022 and 2025, but the 2.1 percentage point gap is a new record, said Schleich and Lovely. <\/p>\n

Before the pandemic foreigners owned around 33 per cent. <\/p>\n

Buyers come from the United Kingdom, the eurozone, Japan and other corners of the earth, but mostly from the United States, which held 43 per cent of non-resident holdings in June. <\/p>\n

\u201cThankfully, our bonds can cross the border tariff-free,\u201d quipped the strategists. <\/p>\n

What foreign investors aren\u2019t buying in Canada are money markets and equities. Non-residents have been net sellers of these in 2026. <\/p>\n

Foreigners now own more than $2.5 trillion of Canadian bonds, while a decade ago, they owned less than half of that, said the strategists. <\/p>\n

While demand is good, the strategists say that a foreigner-heavy investor base also has risks. <\/p>\n

Canadian bonds are attractive to outsiders now because of the country\u2019s political stability, more sustainable fiscal policy and as an alternative to United States Treasuries, which face increasing pressure in bond markets. <\/p>\n

\u201cMaintaining that will be key to keeping borrowing costs relatively low,\u201d said Schleich and Lovely. <\/p>\n

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Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em> <\/p>\n

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\"\"<\/p>\n

Canada\u2019s inflation rate ticked up to 3 per cent in July, Statistics Canada showed yesterday, but that rate varied widely across the country. <\/p>\n

Prices rose at a faster pace from the month before in all provinces except Ontario. At 2 per cent this province\u2019s inflation rate was the lowest in the country, thanks to declines in homeowners\u2019 replacement costs and natural gas prices. Nova Scotia, on the other hand, had the highest rate of inflation at 5 per cent, driven by higher prices for electricity and rent. <\/p>\n

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      \"\" <\/p>\n

      Miles, 65, is looking to retire in the next three years but worries that his investments and Canada Pension Plan and Old Age Security won\u2019t be enough. A low-risk investor, he has accumulated over $1.1 million in various investment vehicles but all of it is in Guaranteed Investment Certificates (GICs), generating returns of about three per cent. Is his approach too conservative? Find out what the experts have to say. <\/p>\n

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      <\/span>\"\" Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country\u2019s most important sectors. Sign up here. <\/p>\n

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      Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at <\/span>wealth@postmedia.com<\/span> with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/span><\/div>\n
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      McLister on mortgages<\/h2>\n

      Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his mortgage rate page for Canada\u2019s lowest national mortgage rates, updated daily. <\/p>\n

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      Financial Post on YouTube<\/h2>\n

      Visit the Financial Post\u2019s YouTube channel for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more. <\/p>\n

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      Today\u2019s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff and Bloomberg.<\/em> <\/p>\n

      Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com . <\/p>\n

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        Posthaste: Foreign investors are snapping up Canadian debt in a record bond binge, but there are risks<\/a>
        \n
        2026-08-18 11:58:23<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

        Foreigners can\u2019t seem to get enough of Canadian debt. According to the latest international securities transactions data out yesterday, foreign investors\u2019 \u201cvoracious appetite\u201d for Canadian bonds continued in June. National…<\/p>\n","protected":false},"author":2,"featured_media":77262,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-77261","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/77261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=77261"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/77261\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/77262"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=77261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=77261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=77261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}