*Canadian federal debt issuance has probably peaked

*Provincial debt issuance ahead of schedule

*Canadian deficits are tiny compared with U.S. ones

By Jennifer Kwan

TORONTO, June 10 (Reuters) - Even with a record deficit, Canadian federal debt issues have probably peaked -- in stark contrast to the situation in the United States -- and provinces are also ahead of schedule in issuing new debt, according to a report released on Wednesday.

The CIBC World Markets report, "Meeting Canada's Fiscal Challenge," noted that the Canadian government is actually issuing debt less quickly than it was a year ago, while the United States is accelerating the supply of Treasury debt.

"The speaks to the outperformance that we're seeing in the Canadian bond market versus the U.S. That speaks to one of the fundamental differences between Canada and the U.S.," said report author Warren Lovely, a senior economist at the bank.

"It's a sign of Canada's superior fiscal position."

Lovely also noted lower take-up of Ottawa's Insured Mortgage Purchase Program, which was the federal government's primary answer last year to pumping liquidity into the banking sector amid the global financial crisis.