Changes in Minimum Bank of Canada Nominal Bond Purchases at Auctions

Section 5.1 of the Statement of Policy Governing the Acquisition and Management of Financial Assets for the Bank of Canada's Balance Sheet states that "The Bank's holdings of Government of Canada nominal bonds and treasury bills are structured to broadly reflect the composition of the federal government's stock of nominal domestic marketable debt."

An upwards adjustment in the portion of nominal bonds held by the Bank is required to ensure that the Bank's holdings continue to broadly reflect the structure of the Government of Canada's marketable debt. This adjustment will involve an increase in the Bank's participation at auctions of 2-year, 10-year, and 30-year bonds to a minimum of 15%, and a lower reliance than in 2007 on its participation at treasury bill auctions. These changes, effective 18 January 2008, are for balance-sheet purposes only and have no implications for monetary policy.

The Bank will continue to indicate its minimum purchase intentions on the Call for Tenders for each nominal bond offering. The Bank's maturing nominal bond holdings, if any, will also be published.

For further information, contact:

Ron Allenby
Assistant Director
Treasury Auction and Settlement Systems
Financial Markets Department
Bank of Canada
613 782-8046

Stéphane Lavoie
Principal
Market Analysis and Operations
Financial Markets Department
Bank of Canada
613 782-8575