CIBC sees Government of Canada bond issuance rising 22%
BNN Bloomberg
Justin Trudeau’s government will end up tapping the bond market for around $250 billion in debt next year, one of the country’s biggest lenders says.
Canadian Imperial Bank of Commerce says a combination of refinancing needs, the budget balance and non-budget items totals $265 billion, but the Finance Department has already pre-funded about $13 billion. This reduces CIBC’s bond issuance estimate for the 2024-25 fiscal year to about a quarter-trillion dollars.
Finance Minister Chrystia Freeland is set to introduce her government’s budget on April 16.
By CIBC’s estimates, the 22 per cent increase in gross bond debt from the current year represents the single largest issuance excluding 2020-21 and 2021-22, when Canada’s government spent billions and racked up record deficits during the pandemic, analysts Ian Pollick, Sarah Ying and Arjun Ananth wrote in a report to investors.
