Posted on 04/28/2014 5:38:23 PM PDT by rickmichaels
Finance Minister Joe Oliver says the government has successfully sold $1.5 billion in 50-year Government of Canada bonds to take advantage of a strong bond market and low interest rates in order to lock in long-term funding.
In a release, the Department of Finance says it has sold the debt, which will mature December 1, 2064, at an interest rate of 2.96 per cent.
"In the current environment, it is both advantageous and prudent for our Government to lock in additional long-term funding," Oliver said in the release.
"This 50-year bond will help us meet our goal of raising stable and low-cost funding to meet Canada’s financial needs and best serve taxpayers."
Previously, the government's longest-term bond was 30 years, at a rate of 2.94 per cent.
Bank of Montreal chief economist Doug Porter says insurance companies and pension funds would be the natural customers for the long-term treasury bills.
The move comes just hours after the department of finance issued a release saying it was considering offering ultra-long-term debt.
Canada is one of the only major industrialized nation with a 'AAA' credit rating from all three of the major credit-rating agencies.
It’s nice to know the market believes Canada will be viable in 50 years, but I really wish Harper would get the ball rolling on paying the debt down. It really wouldn’t be that hard to do.
2.94%? lol, that doesn’t even keep up with annual inflation.
$1.5 billion? Peanuts!
The US government spends $10 billion A DAY!
It would be an indication that some people are concerned enough about the financial situation that they are happy enough just to get their principle back.
The tax rate from Ottawa needs to drop down...way down. The government needs to scale back and out right fire some agencies, and go to a flat tax, that will put confidence in people when they get paid and the majority stays in their accounts.
In fifty years, Canada will be at war with the United Socialist States of Mexico headed by The Supreme One Malia “O”. Fighting will be particularly intense along the border with York Nuevo.
NONE of them.
When the US Dollar crashes, and it will, the entire world financial system goes with it.
The unpaid debts amount to far, far, far more than will ever be paid back. Eventually "evergreening" will stop, because it has to.
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