D4 - Market Structure and Pricing

• The Cost of the Government Bond Buyback and Switch Programs in Canada

  Staff Analytical Note 2018-41 Bo Young Chang, Jun Yang, Parker Liu

  This note examines the costs of the Government of Canada bond buyback and switch programs between 1998 and 2016. Our analysis indicates that the auction design of the buyback program was effective in retiring government debt with minimal costs resulting from bid shading in auctions and price impact.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Debt management JEL Code(s): D, D4, D44