Operational Changes to the Bond Buyback Program
As announced in the Debt Management Strategy 2008-2009, minor operational changes will be made to the bond buyback program to broaden the eligible basket of securities available for buyback operations. The changes are as follows:
- The lower bound of the remaining term to maturity for bonds eligible for the bond buyback program will be changed from 18 months to 12 months;
- The benchmark issues preceding the current benchmark issues in the 2- and 5 year sectors will be included in bond buyback baskets; and
- High-coupon bonds will be included in bond buyback baskets for buyback operations both on a cash and switch basis (they are currently excluded from buyback operations on a cash basis).
The document entitled Details on Bond Buyback Operations, which outlines these changes, was updated today on the Bank of Canada website. The changes will become effective 1 April 2008.
For further information, please contact:
Assistant Director
Financial Markets Department
Bank of Canada
613 782-7836
Principal
Financial Markets Department
Bank of Canada
613 782-8575