Canadians picked our debts despite Trump’s tariff

US products provinces from whiskey to dog food to Slasses– And a great decline in Travel By borders – Canadian investors did not prevent the debt of Uncle Sam. Trump’s chaotic tariff in April witnessed the high point of “”Selling America“Trade is a cup, bonds, and the dollar are all drowned. But though Disorders In the steady income markets, the Canadians bought a net 9.2 billion dollars in US government bonds in April, the largest monthly increase since November 2023.

However, the value of the total property in Canada decreased by about $ 58 billion in the same month, according to the latest Data From the cabinet, to a large extent, the most swinging of any of the best 20 foreign owner of US debt.

The decrease in the huge bond is likely to reflect saleAnd that may be for her Force Trump to retract the so -called mutual definitions. Long -term returns, which rise when bond prices drop, remained. Stubborn With the Federal Reserve – unlike other central banks around the world – for patients with interest rates.

“This gap has appeared with the federal reserve Waiting Rob Haworth, the first vice president and investment strategy at the American Bank, told Canada Bank, along with anyone else. luck.

Canada Bank has reduced prices by 225 basis points over the past nine months, including 25 discount points in January and March. Meanwhile, the Federal Reserve reduced interest rates by 100 points from September to December of last year, but kept fixed rates so far in 2025.

As a result, the US Treasury’s return for 10 years was 4.38 % with the closure of the markets on Friday, while Canada was 3.30 %.

The Hoyworth said that the highest interest rates in the United States could make the cabinet attractive to Canadians and other foreign investors Weakness The US dollar.

At the end of January, the private and private sector in Canada held a treasury worth $ 351 billion. This number rose to $ 426 billion at the end of March before declining to $ 368 billion in April, which is the latest available data.

Specialists in the field of federal reserves Make up Last year, this type of data was long used as a measure of foreign demand for treasury bonds, especially among the first three owners: Japan, the United Kingdom and China. The example of Canada, the seventh largest American debt owner, shows the reason for this approach.

After all, Canadian investors bought more treasury in April, even with the decrease in the total value of their pregnant women after the re -evaluation of bonds at the current market prices. The significant decrease indicates that the northern neighbor of America has severe exposure to the long -term cabinets’ observations, which are more volatile than short -term cabinet bills.

“The evaluation changes in the opposite direction of net sales/purchases in the United States often move and are often large enough to push the total changes in holdings,” economists of the Federal Reserve wrote last year. “In this way, the changes in holdings alone are an unreliable measure to demand across the borders for us or foreign securities.”

Will foreign demand dry?

Foreign investors represent about 30 % of the US Treasury Market, According to For the chief economist in Apollo, Torsten behavior, their behavior is closely monitored with the Trump administration pushing Big bouts In global trade and international finance.

The United States borrows much better than its basic money that it usually allows, thanks to the placing of the dollar as the world’s reserve currency and confidence that America will always pay its bills.

If foreign buyers are exposed to US Treasury bonds, this may force the cabinet to pay higher returns to return buyers. Such a step will be placed Upward pressure On the interest rates for mortgage, small business loans, and other common types of borrowing throughout the economy.

Foreign investors maintain a little $ 9 trillion of the treasury at the end of April, just a slight decrease from the record in March. Havle said that the decline in the dollar this year was more clear than any discharge of the treasury.

He added that this is logical, because the slowdown in trade affects the flow of dollars first as the green is used in transactions. Changes in customizing treasury bonds, which often maintain as investments or banking reserves, occur more slowly.

He said: “Perhaps there is still some basic pressure, as we excel over the place where trade and tariffs end.”

Treasury data from April showed that foreign private investors are purely American debt sellers. Government institutions such as central banks and sovereign wealth funds were clear from buyers.

More current data indicates that the last trend may have been reflected in the months that followed. Power of these official entities that are holding the Federal Reserve in New York She rejected By 48 billion dollars since late March, he paid Bank of America Credit strategy indicates that “cracks” in the demand of these investors are now visible.

However, foreigners do not seem to throw our debts yet. Even angry Canadians.