Government of Canada Cash Management Bond Buyback Program

The Bank of Canada and the Department of Finance are announcing today that the pilot for the Government of Canada Cash Management Bond Buyback program will be made permanent.

The pilot commenced January 2017 and introduced a variable maximum repurchase amount at each operation. The program will maintain the two-step Call for Tenders process that is similar to the Government of Canada Treasury Bill program.

The preliminary Call for Tenders indicate an initial maximum amount that may be repurchased, with the final Call for Tenders that may increase the maximum amount. The operational range for buybacks will continue to be between $500 million and $2 billion.

The operations will continue to be conducted on a weekly basis. The preliminary Call for Tenders will continue to be communicated one week prior to the auction at 15:30 (ET), with the Final Call for Tenders at 9:00 (ET) on the day of the operation.  In certain situations, a weekly operation may not be conducted, typically just in advance of a bond maturity.   In these cases, this will be communicated to the market.

Program participants should expect no disruption to the current operation of the program.

For further information, please contact:

Director
Funds Management and Banking Department
Bank of Canada
613 782-8265

Director
Funds Management Division
Department of Finance Canada
613 369-3898

Media:

Bank of Canada
613 782-8782