April 28, 2014 / 1:08 PM / 4 years ago

Canada says may issue 50-year bond in "near future"

TORONTO, April 28 (Reuters) - Canada may issue an ultra long-term bond that matures in 50 years in the “near future,” the Bank of Canada and the Department of Finance said in a release on Monday.

The current maximum maturity on federal bonds is 30 years, but the Canadian government’s debt management strategy, released in February with the federal budget, said it would look at issuing 50-year bonds.

On Monday, the government repeated that the issuance would be “subject to favourable market conditions.”

Ultra-long bonds could help the Canadian government lock in borrowing costs that are near historic lows. Canada is one of the few leading industrialized nations with an undisputed AAA rating, and its bonds are in high demand. (Reporting by Allison Martell; Editing by Chizu Nomiyama)

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