Finance Minister Joe Oliver says the government has successfully sold $1.5 billion in 50-year Government of Canada bonds to take advantage of a strong bond market and low interest rates in order to lock in long-term funding.

In a release, the Department of Finance says it has sold the debt, which will mature December 1, 2064, at an interest rate of 2.96 per cent.

"In the current environment, it is both advantageous and prudent for our Government to lock in additional long-term funding," Oliver said in the release.

"This 50-year bond will help us meet our goal of raising stable and low-cost funding to meet Canada’s financial needs and best serve taxpayers."

Previously, the government's longest-term bond was 30 years, at a rate of 2.94 per cent.

Bank of Montreal chief economist Doug Porter says insurance companies and pension funds would be the natural customers for the long-term treasury bills.

The move comes just hours after the department of finance issued a release saying it was considering offering ultra-long-term debt.

Canada is one of the only major industrialized nation with a 'AAA' credit rating from all three of the major credit-rating agencies.

With files from The Canadian Press