Bank of Canada update on financial markets

Canada's payments, clearing and settlement systems are functioning well, with the Bank of Canada providing ample liquidity. Equity and futures markets were closed today, but Canadian bond, money and foreign exchange markets were open, with very light trading volumes. Transaction activity in these markets is expected to increase in the days ahead as uncertainty dissipates. The Bank is in close contact with other central banks to monitor developments and deal with issues as they arise.

In this light, as announced this morning, the Bank intends to proceed tomorrow, Thursday 13 September, with the Treasury Bill auction originally scheduled for yesterday. The auction of a small offering of Government of Canada Real Return Bonds has been postponed to next week. The Toronto Stock Exchange has announced that it will resume trading tomorrow for all equity and exchange-traded products. The Bourse de Montréal will also resume trading in its full range of trading instruments, and the Canadian Venture exchange will reopen. As a result, we expect that the full range of trading instruments will be available to markets in Canada tomorrow.

The Bank will continue to provide liquidity as needed to support the smooth functioning of the Canadian financial system in the wake of yesterday's tragic events in the United States.