The federal government has successfully sold another $1 billion worth of 50-year bonds into the market, bumping up its total issuance of these new ultra-long term bonds to $2.5 billion.
After the close Thursday, the government announced that it had sold another $1 billion in 50-year bonds, which was double its minimum issue of $500 million.
The government indicated that the offering generated “exceptionally strong demand from both domestic and international investors, with 35 individual accounts across most investor types participating in the issue.”
Back in April, its first ever issue of this duration generated $1.5 billion. Earlier this week, the government announced its intention to reopen that initial issue, which matures Dec. 1, 2064 and yields 2.76%, in order to further shift its funding mix away from short-term issuance and towards long-term bonds.
This shift is designed to help reduce refinancing risk and to lock in low funding costs, noted federal finance minister Joe Oliver.