In line with the announcement in the federal 2024 Budget, the Government of Canada will be introducing a temporary one-month treasury bill. The first one-month treasury bill auction will occur on 7 May 2024.
The objective of the one-month treasury bill is to support the Canadian money market’s orderly transition away from Bankers’ Acceptances (BAs).The one-month treasury bill will act as a partial substitute for investors of one-month BAs while private sector one-month investment alternatives are expanded and/or introduced.
This new treasury bill tenor is being introduced as a temporary program for one year. If one-month treasury bill auctions indicate demand is weak or it is apparent that the program is not meeting its intended objective, the government may reduce auction sizes or discontinue the program before one year. Conversely, the government may choose to extend the program or make the one-month treasury bill permanent if demand proves robust. Any decision regarding the future of the program will be communicated to market participants well in advance.
Operationally, one-month treasury bill auctions will take place on a bi-weekly basis, at 12:00 pm on the same day (Tuesdays) as Canada’s existing treasury bill auctions. Auction sizes are expected to be adjusted to reflect demand conditions. One-month treasury bill auctions will be announced through a separate Call for Tender and will be subject to the existing Terms and Conditions for treasury bill auctions. There will be no changes to the Terms and Conditions for the three, six, and twelve-month treasury bill auctions, however, starting on 7 May all treasury bill sectors’ Call for Tenders and Pre-Call for Tenders will occur at 1:00 pm on their relevant days (currently 10:40 am).
For further information, please contact:
Director
Financial Markets Department
Bank of Canada
343‑573‑4846
Director
Funds Management Division
Department of Finance Canada
343‑549‑3651