(Adds details on ultra-long bonds, Quebec budget)
TORONTO, Sept 8 (Reuters) - The Canadian province of Quebec is considering issuance of ultra-long bonds after the federal government's recent issue of these bonds met with strong investor demand, Quebec Finance Minister Carlos Leitao said on Friday.
"Given the good reception in the financial markets in general for longer dated products, we will consider that," Leitao said. "We will pick our spot ... but certainly ultra-longs are part of the mix."
Ultra-long bonds, which help lock in financing over extended periods of time and enable governments to refinance less often, have a term to maturity of 40 years or more. They are not as common as 30-year issues.
The federal government in August sold C$750 million of its ultra-long bond, which matures in 2064. It was the first reopening of that bond since November 2014. On Tuesday, Hydro-Quebec sold C$500 mln of its 2055 bond.
Issuance of these bonds comes as interest rate increases by the Bank of Canada drive up borrowing costs for shorter-dated issues.
Quebec has already borrowed enough to satisfy its requirements for this fiscal year but could pre-fund for the next fiscal year.
In a financial report, the province showed a budget surplus of C$98 million for the three months ending June 30, 2017 after the deposit of C$506 million in the Generations Fund, a fund dedicated to reducing the province's debt. In March, it projected a balanced budget for 2017-2018. (Reporting by Fergal Smith; editing by Matt Scuffham and David Gregorio)