The federal government is contemplating the imminent issue of a 50-year bond, the Department of Finance announced Monday.
Finance said it is considering issuing a bond with a maturity of 50 years “in the near future, subject to favourable market conditions.”
It notes that since 2012, it has been pursuing a tactical strategy of shifting away from short-term issuance and towards long-term bonds. And, in the current low interest rate environment, with the strong demand for long-term bonds, the government says that it is “advantageous and prudent” for it to continue to lock in additional long-term funding.
“The issuance of bonds in the ultra-long sector would contribute to a reduction in refinancing risk at a low cost, in line with the key objectives of the medium-term debt strategy,” it says.