Globe and Mail: Foreign investment in Canadian federal bonds hits record high, keeping borrowing costs low

“But Canada’s net debt, which takes account of financial assets such as the Canada Pension Plan and the Quebec Pension Plan, is the lowest in the group by far, at 10 per cent, and its cost of borrowing, at about 3.40 per cent over a 10-year term, is about one percentage point less than the rate investors demand on U.S. debt – a wide gap by historical standards. “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 Cross-Border Solutions ‘

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