More 50-year Bonds Issued


    The government of Canada has issued $1 billion in 50-year bonds. This is in addition to the $2.5 billion in 50-year bonds currently outstanding. The additional issuance of bonds in the ultra-long sector is in line with the commitment the government made in its ‘Economic Action Plan 2012’ to reallocate short-term bond issuance towards long-term bonds to help reduce refinancing risk and to lock in low funding costs for Canadian taxpayers. Maturing on December 1, 2064, and with a yield of 2.575 per cent, the government doubled its minimum size of $500 million for the transaction. Canada received exceptionally strong demand from both domestic and international investors, with 36 individual accounts across most investor types participating in the issue. This is the government’s third issuance of ultra-long bonds this fiscal year.