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Quicktake, CIBC on FY21/22 Budget

CANADA
On today's FY21/22 budget release expected around 1600ET, CIBC Capital Markets
expects a "reduction in gross issuance to C$260.0bn from C$372.5bn the year prior. This covers the C$121.2bn deficit listed in the November 2020 Fall Economic Statement, C$105bln in maturities, C$24bn in new stimulus in F21/22 (estimated), and C$10bn for non-budgetary items and other adjustments."
  • The key thing we are watching is the allocation of issuance, which should be skewed to favour longer dated maturities. Any steepening impact caused by this is likely limited.

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