Foreign investors sharply increased their holdings of Canadian securities in January. Statistics Canada reported $46.7 billion in foreign investment, while Canadian investors bought $11.4 billion in foreign securities, resulting in a net inflow of $35.3 billion, the highest since October 2025.
Investors purchased a record $51.3 billion, including $31.5 billion in corporate bonds, much of it tied to euro-denominated issuances by Canadian banks. Federal government bonds attracted $12.9 billion, while provincial bonds saw $6.8 billion in inflows.
At the same time, foreign investors reduced their exposure to short-term instruments by selling $10.2 billion in money market securities.
Foreign investment in Canadian equities reached $5.7 billion. Most of the activity focused on energy and mining shares. The S&P/TSX composite index rose 0.7% during the month.
Canadian investors continued to invest abroad by purchasing of foreign bonds totaling $9.1 billion, though at a slower pace than in December.
Canadians also bought $2.4 billion in foreign equities. Purchases of U.S. shares were partly offset by sales of European holdings. The S&P 500 index rose 1.4% in January.