National Post ePaper

Canada’s U.S. dollar bonds first since 2020

Esteban Duarte

Canada plans to sell bonds in the U.S. dollar market for the first time since the start of the pandemic as the North American country’s vaccination campaign gradually gains pace amid a third wave of the virus.

It plans to sell five-year bonds in the first benchmark-sized transaction in the currency since January 2020, Bloomberg data show. The bonds, which are expected to be priced Tuesday, are being marketed at around 8 basis points over U.S. Treasuries.

Canada’s economy is expected to grow 6.1 per cent this year, up from a 5.4 per cent decline in 2020, according to analysts’ consensus compiled by Bloomberg. The survey sees the U.S. economy, Canada’s largest trade and investment partner, expanding, by 6.3 per cent in 2021 after a 3.5-per-cent contraction in 2020.

BMO Capital Markets, Bofa Securities, J.P. Morgan Chase & Co., Scotiabank and TD Securities are arranging the deal.

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2021-05-11T07:00:00.0000000Z

2021-05-11T07:00:00.0000000Z

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