Non-Canadians bought debt securities worth a net $175 billion through June, the most ever over that six-month period, Statistics Canada reported. Most of it was in the form of federal government bonds, although private corporations sold bonds worth $61.3 billion, compared with $21.9 billion over the first half of 2025. (The Logic)

Talking point: Global investors appear keen to finance Prime Minister Mark Carney’s ambitious spending plans. Carney is benefiting from the discovery by hedge funds that they can make money by taking advantage of small price differences in sovereign debt markets—a trade that both lowers interest rates and introduces systemic risk because of the flighty nature of hedge fund managers. But Canada has many attributes that debt investors like in a chaotic world. The prime minister is a former central banker, Canada’s finances are in better shape than many of its peers and inflation is under control. 

Sponsored Content

The real-world economic offshoots of sovereign AI

By Deborah Aarts

Increasing healthcare access across Canada

By Deborah Aarts

What it takes to lead a frontier firm

By Deborah Aarts

Paid promotional content