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Government of Canada successfully issued $1.5 billion in 50-year bonds. – announced Joe Oliver Finance Minister

Ultra long term bonds that will mature in the end of 2064 were issued by the Government of Canada with a yield of 2.96%.

According to the press release by the government – there are two major benefits – one is low cost long term refinancing and the other is ensuring a locked in low cost loan for a very long period.

These types of bonds will be favoured by the insurance companies and pension funds said Doug Porter, Bank of Montreal chief economist.

Canada has been issuing 30 years bonds but this was the first time they took such a long shot in future.

This is unlikely to have any impact on the mortgage contract period as Canadians mostly favour five years term.