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20 Feb 2014
Flash: No love for Canadian bonds - Nomura
FXStreet (Bali) - As Charles St-Arnaud, Economist at Nomura, notes, foreign investors sold a large amount of Canadian bonds in December.
Key Quotes
"Non-residents decreased their holdings of Canadian securities by C$4.3bn in December, following an increase of C$9.1bn in November. All the foreign outflow was in bonds (-C$10.9bn) while there were inflows in money-market instruments (+C$4.3bn) and equity (+C$2.3bn)."
"Overall, the report shows a deterioration in inflows into Canadian assets after some improvement in recent months. The continued weakness in government bonds with another month of outflows points to a lack of interest from foreign investors."
"Moreover, foreigner investors sold C$10.3bn of government bonds in 2013, the first yearly outflow since 2007 which was in a context of debt reduction. The deterioration in inflows into Canadian securities over the course of 2013 has been an important reason behind the gradual weakening of CAD in the second half of the year."
Key Quotes
"Non-residents decreased their holdings of Canadian securities by C$4.3bn in December, following an increase of C$9.1bn in November. All the foreign outflow was in bonds (-C$10.9bn) while there were inflows in money-market instruments (+C$4.3bn) and equity (+C$2.3bn)."
"Overall, the report shows a deterioration in inflows into Canadian assets after some improvement in recent months. The continued weakness in government bonds with another month of outflows points to a lack of interest from foreign investors."
"Moreover, foreigner investors sold C$10.3bn of government bonds in 2013, the first yearly outflow since 2007 which was in a context of debt reduction. The deterioration in inflows into Canadian securities over the course of 2013 has been an important reason behind the gradual weakening of CAD in the second half of the year."