Canada sells more 50-year bonds
Government moves to lock in funding at historically low rate
A few months after doing it for the first time, the federal government has gone back to the bond market to sell another batch of 50-year bonds.
Ottawa borrowed $1 billion from the bond market late Thursday, with a maturity date of Dec. 1, 2064, and paying an interest rate of 2.76 per cent.
Ottawa said demand for the debt was "exceptionally strong" from both domestic and international investors.
It's the second time Ottawa has tapped the bond market for ultra-long bonds this year, as Ottawa previously sold $1.5 billion worth of 50-year bonds at the end of April.
Before that, the government's longest-term debt was 30 years.
It's a move to lock in secure sources at funding at comparatively low rates.
"We are continuing to deliver on our commitment to reduce refinancing risk and lock in low-cost funding for Canadian taxpayers," Finance Minister Joe Oliver said in a statement. "Today's successful re-opening of the long-term bond is another example of how this Government efficiently responds to market needs."