Weeks before first pandemic-era federal budget, Ottawa’s hopes of cheap debt erode Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account Getting audio file ... This translation has been automatically generated and has not been verified for accuracy. Full Disclaimer Sean Kilpatrick/The Canadian Press Since the early days of the pandemic, the federal Liberal government has pointed to rock-bottom interest rates as a key reason why their spend-in-all-directions fiscal approach will not drive Canada into a debt wall. In the fall economic statement, the Liberals asserted that its pandemic debts would be affordable, citing the precipitous decline in yields for the government’s 10-year bonds, a gauge not only of Ottawa’s borrowing costs, but also of the credit market’s belief that economic growth and inflation would be lukewarm for years to come.