Canada: Looking ahead to the 2017/18 debt management strategy - TDS

Research Team at TDS explains that the Canadian economy sailed through 2016H2 without much trouble and we have not heard any indication that the government is looking at significant new spending commitments in today’s budget, so TDS see no reason to expect a material deviation from the $27.8b deficit projected in the Fall.

Key Quotes

“Refinancing needs are expected to be slightly lower in the upcoming fiscal year, but we are only looking for slight tweaks to the issuance program. We expect bond issuance in 2017/18 of slightly greater than $130b—down slightly from $133b in FY 2015/16. The stock of T-bills is expected to be flat or marginally lower, also at roughly $130b.”