The Finance Department and Bank of Canada better keep those foreigners happy.
That's the takeaway from a National Bank report that showed foreign investors now control ~36% of our federal debt. The long-term average is 23%.
Foreign investors bought a record $91 billion worth of Canadian IOUs (bonds and Treasury bills) in the 12 months ending March 31, 2025. That's nearly 60% of the new debt churned out during that period. And it's a good thing they were bidding because Ottawa is set to amass a colossal pile of fresh #GoC# debt by March 31, 2026 (see chart below).
For those with mortgages, it's like watching a suspense thriller where the climax is the interest rate. But what does this mean for borrowers?
Three things, among others:
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