Following a successful offering earlier this year, the federal government is looking to issue more ultra-long bonds.
The government said Wednesday that it is considering reopening the 50-year bonds that were issued back in April and selling more of the ultra-long bonds, subject to favourable market conditions. (See Investment Executive, The return of the 50-year bond, July 2014.)
The government said it will reopen the 2.75% bond, which matures on December 1, 2064, using a syndicated process.
At the end of April, the government issued $1.5 billion in 50-year bonds. This was its first experiment with ultra-long bonds, reflecting its plan to shift from short-term bond issuance towards long-term bonds in a bid to help reduce refinancing risk.