The Week Ahead: Sep 7–11, 2026
Higher long-term borrowing costs are creating new fiscal challenges for some of the world’s largest economies.
This week’s outlook looks at the U.S. and Japan, where rising bond yields are increasing the cost of servicing government debt after years of unusually low rates. With slower population growth, aging demographics, and persistent fiscal deficits adding to the picture, the relationship between economic growth and borrowing costs is becoming increasingly important.
3 Key Takeaways
Higher Borrowing Costs Are Changing the Fiscal Picture
For years, unusually low interest rates allowed governments to carry large amounts of debt while keeping interest costs relatively manageable. As long-term yields rise, that dynamic is changing, putting greater pressure on government finances in both the U.S. and Japan.
Demographics Add to the Challenge
Aging populations and slower workforce growth are limiting potential economic growth. Japan has faced this challenge for years, while the U.S. is increasingly experiencing similar demographic pressures as retirements rise and net immigration remains limited.
Inflation Takes Centre Stage This Week
In the U.S., August CPI will be one of the key economic releases to watch. Headline inflation is forecast at 3.4% year over year, while core inflation is expected to ease slightly to 2.4%. Canada has no major economic data releases scheduled this week, leaving greater attention on developments south of the border, trade relations, and geopolitical events.
Quote of the Week
"The decisions we make today should strengthen what comes next."
— James Leung
About the Contributor
James Leung
Senior Wealth Advisor & Portfolio Manager, CIBC Wood Gundy; Founder & Director, 6ix Wealth Foundation
James shares market commentary, economic observations, and wealth management perspectives to help investors and business leaders better understand the trends, opportunities, and developments shaping today's financial landscape.
Read the Original Commentary
This article is based on James Leung's weekly market outlook originally shared on LinkedIn and commentary from CIBC Capital Markets.
Read the Full Commentary on LinkedIn →
Disclaimer
This article is intended for informational and educational purposes only and should not be considered financial, investment, legal, or tax advice. Readers should consult qualified professionals regarding their individual circumstances before making financial decisions.
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