The government sometimes borrows money

when it needs to spend more than the cash it has on hand,

Just like people borrow for big purchases like buying a car or renovating a home

This could be to pay for a major project or public services.

To help fund this, people and companies lend the government money

and the government agrees to pay it back in the future, with interest.

That’s the whole idea of a bond,

and the Bank of Canada sells bonds to us on behalf of the government.

And, these bonds help people and companies save for the future.