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Canada's 10-Year Bond Auction Bids Exceed Supply Twofold, With Yield at 3.653%

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The Government of Canada's (GoC) latest 10-year bond auction attracted strong investor demand on Thursday, with bids exceeding the amount offered by more than two times, according to data published by the Bank of Canada.

The Canadian federal government sold C$5 billion of 10-year bonds maturing Dec. 1, 2036, said the BoC. The auction cleared at an average yield of 3.653%, with accepted yields ranging from 3.647% to 3.659%. The average price was C$98.697.

Demand was strong, with total bids from distributors reaching C$11.49 billion, resulting in a bid-to-cover ratio of 2.297 times, added the central bank.

Canadian investors received 65.5% of the allocation, while international investors accounted for the remaining 34.5%. The Bank of Canada did not participate in the auction.

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