Canada's Borrowing Requirements to Rise to CA$611 Billion in 2027/28 as Bond Issuance Increases, CIBC Says

07:08 AM EST, 11/06/2026 (MT Newswires) -- Canadian borrowing requirements are projected to rise to CA$611 billion in 2027/28 from CA$587 billion this fiscal year, mainly due to increased financing for loans and capital projects, alongside slightly higher refinancing needs under Thursday's 2026 budget, according to CIBC Economics in a note. The Canadian government unveiled CA$142.1 billion in new tax incentives, spending and other measures over five years in the 2026 budget presented in parliament on Thursday. Bond issuance is projected to rise to CA$316 billion from CA$284 billion, with the additional supply concentrated mainly in two- and five-year maturities, indicating a greater focus on shorter-term financing, wrote CIBC in the late Thursday note. Treasury bill issuance is also projected to rise, but its share of overall borrowing is expected to decline, said the bank. Higher interest rates are expected to increase debt-servicing costs relative to gross domestic product, added CIBC. However, Canada's fiscal position remains comparatively sound, particularly against the US, even when provincial debt is included. This should continue to support investor confidence and underpin relatively low yields on Canadian government bonds, said the bank.