Canada is testing investor demand for a three-year bond in U.S. dollars after using a revenue windfall to help narrow budget deficits to near zero within five years.

It’s marketing the notes at initial price talk of around 10 basis point over U.S. treasuries, according to people familiar with the matter. Canada last sold 3-year bonds in the currency in 2019 when it priced a US$3 billion deal, Bloomberg data show. 

The country’ budget deficit for the fiscal year that ended in March came in at $113.8 billion (US$90.2 billion) versus estimates in December of $144.5 billion, according to the government’s April 7 fiscal plan. The budget gap is projected to fall to $8.4 billion by fiscal 2026, compared to $13.1 billion previously estimated.

The transaction, which is scheduled to be priced Wednesday, is being arranged by Bank of Montreal, Citigroup Inc., HSBC Holdings Plc., National Bank of Canada and Royal Bank of Canada, said the people. Canada is rated at the top investment grade by Moody’s Investors Service and S&P Global Ratings and one step lower by Fitch Ratings.