The Government of Canada successfully issued $1 billion in 50-year bonds.
Maturing on Dec. 1, 2064, and with a yield of 2.575%, the government doubled its minimum size of $500 million for the transaction.
Read: Bond yields: Lower for longer
Canada received exceptionally strong demand from both domestic and international investors, with 36 individual accounts across most investor types participating in the issue.
With the addition of $1 billion in issuance on Thursday, the government has now issued a total of $3.5 billion in 50-year bonds.
Read: Canada sells more ultra-long bonds
The additional issuance of bonds in the ultra-long sector is in line with the government’s commitment to reallocate short-term bond issuance toward long-term bonds to help reduce refinancing risk and to lock in low funding costs.
“I am pleased to announce another successful reopening of Canada’s 50-year long-term bond,” says Finance Minister Joe Oliver. “We have also seen growing diversity in our investor base, which is a testament to Canada’s strong economic and fiscal position, and to the flexibility and options associated with Canada’s debt securities program.”