Source: The Canadian Press

Non-residents acquired a further $9.5 billion of Canadian securities in October, mainly adding sizable amounts of corporate bonds and stocks to their portfolios.

Statistics Canada reports Canadian investment in foreign securities decelerated to $821 million, with investment in U.S. government treasury bills largely offset by sales of foreign equities.

Strong foreign acquisitions of Canadian bonds totalling $7.8 billion in October were led, for a third month, by corporate bonds.

Foreign purchases of Canadian private corporate bonds amounted to $5.1 billion, with the bulk in new U.S. dollar-denominated bonds issued by financial and transportation firms.

Non-residents added provincial government bonds to their portfolios for a seventh straight month with purchases of $3 billion in October, nearly all secondary market transactions.

Non-residents have acquired $20.1 billion of provincial government bonds so far in 2010, exceeding the previous high annual foreign investment of $17.5 billion in 1993.

In contrast, non-residents reduced their holdings of federal government bonds by $755 million in October, mostly shorter term-to-maturity instruments

At the short end of the spectrum, non-residents also reduced their holdings of Canadian paper by $1.2 billion.

Non-residents purchased $3 billion of Canadian equities on the secondary market in October, adding to the $3.4 billion acquired in September.

Canadian investors acquired $1.5 billion of foreign money market instruments in October, mainly U.S. Treasury bills.

Acquisitions of foreign bonds slowed to $383 million from $1.2 billion in September.

Canadian investors removed $1.1 billion from their holdings of foreign equities in October, the largest monthly divestment in a year.