Canada plans to raise bond issuance by 31% in 2025-26

By Fergal Smith

TORONTO, July 16 (Reuters) - Canada plans to increase bond issuance by 31% in the current fiscal year, the government's Debt Management Strategy document showed on Wednesday.

Bond issuance is set to increase to C$316 billion ($230.96 billion) in 2025-26 from C$241 billion in 2024-25, with supply rising across the yield curve as Canada refinances maturing debt and meets other financial requirements. The fiscal year began in April.

The planned increase in the stock of T-bills is much less, at C$296 billion from C$285 billion, while the government said it will terminate the 1-month treasury bill program on August 12.

Planned total borrowing of C$623 billion would eclipse the record high set in the pandemic.

Prime Minister Mark Carney has said his government, which retained power in an April general election, will present a budget in the fall. The budget is typically tabled by April, the first month of the fiscal year.

($1 = 1.3682 Canadian dollars)