(May 31 – 16:25 ET) – Recent rate hikes may not be slowing the economy yet, but they are boosting bond returns.

The Secretary of State is announcing that, effective June 1, the interest rate on outstanding Canada Savings Bonds series 50 and 54 to 65 will be increased to 5.2% per year for the three-month period ending August 31, 2000. Series 44 to 49 and 51 to 53 will continue to earn their posted guaranteed minimum rates. Canada Premium Bond rates will also remain unchanged. The ministry says other bond rates will be increased if market conditions warrant.

“The rate increase announced today ensures that Canada Savings Bonds maintain their competitiveness relative to other savings and investment instruments,” noted the secretary Jim Peterson.