Ottawa considers issuing ultra-long bonds

The federal government issued $750 million in ultra-long bonds on Tuesday, indicating that it wanted to make good on a commitment in the 2017 federal budget to issue more long-term bonds to lock in low interest rates and reduce refinancing risk.

The ultra-long bonds issued on Tuesday mature on Dec. 1, 2064 and pay 2.22%. These new issues are in addition to the $3.5 billion in ultra-long bonds currently outstanding, the government says.

This represents the fourth issuance of the Dec. 1, 2064 ultra-long bond since 2014, when the government first issued the bond, then yielding 2.75%

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