Foreign ownership of Canadian federal bonds hits record 43% as inflows surge

Record $27.7 billion in April purchases by overseas investors helped keep Ottawa's borrowing costs low, supporting the government's spending agenda.

By Handelsavisen Newsroom · Automated 2026-06-30 11:38 UTC · 1 min read

Foreign investors drove a record surge in demand for Canadian federal bonds in April, purchasing $27.7 billion of the debt.

The massive inflow pushed the share of outstanding bonds held by overseas entities to an all-time high of 43%, according to data reported by The Globe and Mail.

The sustained appetite from international buyers, including pension funds, insurance companies, and hedge funds, has helped suppress yields on Canadian government debt.

This external demand provides a crucial buffer for the federal government, keeping borrowing costs manageable despite Prime Minister Mark Carney's ambitious and expensive nation-building projects.

The data highlights the deep integration of Canada's sovereign debt market with global capital flows.

With nearly half of all outstanding federal bonds now held abroad, the market remains sensitive to shifts in global risk sentiment and relative yield differentials.