Foreigners Sold C$17.3 Billion of Canadian Securities in August, Targeting Federal Government Debt

By Robb M. Stewart

OTTAWA--Foreigner investors reduced holdings of Canadian securities in August, the first sell-down of the year, thanks to an unprecedented sale of federal government debt.

Canadian investors the same month added to foreign securities to their portfolios after a sizeable divestment a month earlier, which meant a significant outflow of funds from the Canadian economy in August.

Nonresident investors sold a net 17.31 billion Canadian dollars, the equivalent of US$12.2 billion, in Canadian securities during the month, Statistics Canada said. Canadian investors bought C$23.9 billion in foreign securities, led by purchases of U.S. shares.

As a result, international transactions generated a net outflow from the Canadian economy of C$41.21 billion in August, after an inflow totaling about C$123.8 billion between January and July.

Foreign investment in Canadian securities remains strong this year, totaling C$161.57 billion during the first eight months of 2026 compared with C$27.11 billion over the same period the year before.

Still, non-resident investors in August reduced their exposure to federal government debt securities by C$17.5 billion, including C$11.2 billion in bonds and C$6.3 billion in paper, Statistics Canada said. This followed a cumulative investment totaling roughly C$99.4 billion from January to July.

The selling for the month was moderated by purchases of Canadian corporate bonds and provincial government bonds, though foreign investors sold C$9.9 billion of Canadian shares after buying about C$8.6 billion over the previous two months.

Canadian investors were again buying U.S. shares in August, picking up some C$28.9 billion worth for the month after divesting C$31 billion in July. Over the first eight months of 2026, Canadians have bought C$76 billion of U.S. shares, the highest on record, compared with a C$52.6 billion investment in the same period last year.

Still, Canadian investors reduced holdings of U.S. federal government bonds by about C$8.6 billion, a seventh consecutive monthly divestment.

The monthly international securities report covers a portfolio of transactions in equity and investment fund shares, bonds and money market instruments for both Canadian and foreign issues. The activity excludes transactions in equity and debt instruments between affiliated enterprises.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 16, 2026 09:20 ET (13:20 GMT)