UPDATE 1-Foreigners pile into Canadian securities in April

Mon Jun 16, 2014 8:40am EDT

(Gives breakdowns, background on diminished interest in Canadian securities)

* Foreign investment C$10.13 bln in April, divestment C$1.41 bln in March

* Foreign investment in Canadian securities highest in a year

* Canadian investment in foreign securities reduced to C$2.49 bln

OTTAWA, June 16 (Reuters) - Foreigners bought a net C$10.13 billion ($9.29 billion) in Canadian securities in April, the highest level in a year, after a retirement-led divestment of C$1.41 billion in March, Statistics Canada said on Monday.

The biggest tranche was the C$6.49 billion in purchases of debt securities, more than reversing March's sale of C$4.29 billion. This included C$4.10 billion in money market instruments, led by provincial government paper and also including purchases of federal government paper after six months of divestments, largely due to retirements.

Despite continued sales of federal government bonds, which amounted to C$9.01 billion in the past three months, foreigners acquired C$2.39 billion in bonds in April, reflecting purchases of new private corporate bonds.

Foreign interest in Canadian securities, heightened in the aftermath of the 2008-09 recession as Canada performed relatively well, has diminished somewhat as the United States has begun catching up. For the year to date, purchases by foreigners amounted to C$15.97 billion, down from C$24.48 billion a year earlier.

Canadians, meanwhile, reduced their purchases of foreign securities to C$2.49 billion in April from C$8.10 billion in March. They bought stocks and money market paper and sold bonds.

($1=$1.09 Canadian) (Reporting by Randall Palmer; Editing by Chizu Nomiyama)

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