Canada Yields Jump on Financing Plans for $254 Billion Deficit
- Government plans sixfold increase in 10-year, 30-year issues
- Outstanding Treasury bills to rise 94% to C$294 billion
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Yields on Canada’s long-term debt jumped after the government of Justin Trudeau said it will issue of flood of new bonds to finance a record budget deficit.
The yield on Canada’s 30-year bond spiked to 1.095% as of 4:01 p.m. Toronto time compared with about 1.026% before the release of the government’s fiscal snapshot Wednesday, Bloomberg data show. It was the biggest sell-off for the 30-year since March. The 10-year yield moved as high as 0.573% from about 0.54%.