Economics
Canada Ramps Up Bond Supply to 7-Year High to Aid Economy
- August sovereign-debt sales seen climbing to C$15 billion
- Government boosts issuance to fund Trudeau fiscal stimulus
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Canada faces its heaviest month of debt issuance in seven years as the government takes advantage of borrowing costs near record lows to stimulate the country’s stalling economy.
The nation will auction around C$15 billion of bonds in August, the largest monthly supply since 2009, according to National Bank of Canada and Royal Bank of Canada estimates. The yield on two-year securities sold Wednesday at the first of this month’s four bond offerings was 0.513 percent, about 40 basis points below its five-year average.