International financial markets experienced significant shifts on June 30, 2026, as foreign investors purchased record amounts of Canadian government debt and India reduced its non-resident claims.
Offshore buyers acquired a record $27.7 billion in Canadian bonds in April, pushing their ownership share to 43 percent.
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The influx helps fund Prime Minister Mark Carney's $280 billion infrastructure plans.
“I regard the broader buyer base as a positive development, which has helped the Canadian government fund relatively large bond programs without unduly raising borrowing costs,” said Andrew Kelvin, head of Canadian and global rates strategy at TD Securities.
The growing appetite for Canadian debt comes as international investors seek stable alternatives to U. S.
Treasuries.
“Diversification away from Treasuries is one likely driver of increased foreign bond holdings in Canada, not least because of the high sovereign bond rating of Canada and liquid markets,” said Robin Marshall, director, global investment research at FTSE Russell.
Market analysts emphasize that the trend underscores strong global trust in Canada's top-tier credit rating.
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“Strong foreign appetite for Canadian government debt represents a vote of confidence in the stability of the country’s political institutions and its overall economic trajectory,” said Karl Schamotta, chief market strategist at Corpay.
India's International Investment Position Improves
Meanwhile, the Reserve Bank of India revealed that India's net international investment position improved significantly during the final quarter of fiscal year 2026.
Non-resident claims on India fell by USD 52.4 billion. This shift was driven by a USD 40.1 billion decline in foreign assets inside India.
Concurrently, overseas financial assets held by Indian residents rose by USD 12.3 billion, reinforcing the external balance sheet.
The annual ratio of India's international financial assets to liabilities jumped to 85.2 percent by March 2026.
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However, debt liabilities still grew to represent 56.6 percent of total external liabilities.
