Once a Fiscal Stalwart, Canada Suddenly Looks Vulnerable

Justin Trudeau’s government made every effort on Wednesday to convince Canadians the country can afford a budget deficit that will soar to 16% of economic output this year. Its actions suggest there’s some worry. In the same fiscal update that forecast a C$343 billion ($254 billion) deficit, Finance Minister Bill Morneau announced a significant shift in strategy toward issuing longer-dated bonds -- a tacit acknowledgment the rising debt levels are making the nation’s finances more vulnerable to any rise in interest rates.-- More...