Canada CAD

Canada 30-Year Bond Auction

Impact:
Low

Latest Release:

Date:
Actual:
3.698%
Forecast:
Previous/Revision:
3.545%
Period:
What Does It Measure?
The Canada 30-Year Bond Auction measures the government’s ability to issue long-term debt securities and gauge investor demand for these bonds over a 30-year maturity period. The primary focus is on interest rates, debt financing, and investor sentiment, with key indicators including bid-to-cover ratios and yield rates that inform about market conditions.
Frequency
The auction occurs regularly, typically every month, and results are released on the auction day shortly after its conclusion, providing a final figure for investors.
Why Do Traders Care?
Traders pay close attention to the 30-Year Bond Auction as it reflects the demand for long-term debt, impacting interest rates and fiscal policy expectations. Strong demand can lead to lower yields, which could positively affect related assets including Canadian dollars and equities, while weak demand might suggest higher future borrowing costs and bearish sentiments.
What Is It Derived From?
The auction results are derived from bids submitted by a pool of institutional and retail investors, which typically includes banks, pension funds, and asset managers. The final yield is then determined by the accepted bids, where successful bidders agree to purchase specified amounts at the clearing rate, which is influenced by the total amount of bids relative to the amount offered.
Description
The Canada 30-Year Bond Auction provides insights into long-term borrowing costs and investor confidence in government debt instruments. As a crucial component of the fixed-income market, the auction acts as a barometer for economic perceptions and lending conditions, reflecting broader economic trends.
Additional Notes
The 30-Year Bond Auction serves as a leading economic indicator, with its outcomes affecting both domestic and international perceptions of Canadian fiscal health. Comparing its results to shorter-term bond auctions can provide context regarding the yield curve and market expectations for future interest rates.
Bullish or Bearish for Currency and Stocks
Higher than expected demand: Bullish for CAD, Bullish for Stocks. Lower than expected demand: Bearish for CAD, Bearish for Stocks. Dovish tone: Signaling lower interest rates or ongoing economic support, is usually good for the CAD but bad for Stocks due to lower expected returns on investments.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
3.698%
3.545%
3.545%
3.229%
3.229%
3.503%
3.503%
3.25%
3.25%
3.39%
3.39%
3.116%
3.116%
3.388%
3.388%
3.611%
3.611%
3.718%
3.718%
3.246%
3.246%
3.176%
3.176%
3.025%
3.025%
3.691%
3.691%
3.712%
3.712%
3.385%
3.385%
3.218%
3.218%
3.01%
3.01%
3.07%
3.07%
2.989%
2.989%
3.017%
3.017%
3.316%
3.316%
2.994%
2.994%
2.768%
2.768%
3.222%
3.222%
2.814%
2.814%
2.401%
2.401%
2.244%
2.244%
2.019%
2.019%
1.763%
1.763%
2.13%
2.13%
2.011%
2.011%
1.849%
1.821%
1.849%
1.849%
1.779%
1.779%
1.887%