The Bank of Canada allotted C$3 billion of 2059 bonds at an average yield of 4.201%, coverage 2.545, coupon 3.750%. Bloomberg’s feed called that the highest long-term auction yield in 19 years, since 2007.
The 17 September off-the-run 30-year nominal bond auction CA135087U857 allotted C$3 billion at an average price of 92.020 and an average yield of 4.201%. The coupon is 3.750% and maturity is 1 June 2059. Coverage was 2.545. Amount outstanding after the auction was C$6 billion. Yields allotted ranged from 4.196% to 4.203%. Those figures are the Bank of Canada table.[1], [2]
Canadian accounts received 48.94% of the allotment and foreign accounts 51.06%. Total bids were C$7.634400 billion. Settlement is 18 September. The Bank page does not narrate why foreign books won a slim majority. It only prints the split. Coverage at 2.545 is adequate, not a scramble, on the same official row.[1], [2]
Bloomberg Economics RSS said Canada auctioned long-term bonds at the highest yield in 19 years, as upside inflation risks raise government borrowing costs. The live page returned HTTP 403. However the Bank already published the C$3 billion 2059 sale at 4.201%. The 2007 / 19-year comparison is Bloomberg’s headline, not an extra yield in the tender results. Alternative explanation: a thin long end, not only inflation risk, can lift an off-the-run print.[1], [2]
