In the 2023 Fall Economic Statement, the Canadian government announced its intention to purchase Canada Mortgage Bonds (CMBs), beginning in 2024, up to an annual maximum of $30 billion while ensuring that the pace and volume of these purchases are appropriate for market conditions.
In the 2024 calendar year, the Government of Canada purchased a total $29 billion of $58 billion of fixed-rate CMB primary issuances, in line with the 50% target announced on January 16, 2024.
The government will participate in all fixed-rate CMB syndications proposed for 2025. All purchases will be for fixed-rate 5-year and 10-year CMBs, will be done in the primary market at syndication pursuant to orders placed with the lead underwriters, and these orders will be completely filled.
- The government will not purchase floating-rate CMBs.
- The Bank of Canada (the Bank), in its role as government of Canada’s fiscal agent, will make these purchases on the government’s behalf and be responsible for managing the government’s CMB portfolio.
For the 2025 calendar year, the Government of Canada will continue to target a total purchase amount of 50% of fixed-rate CMB primary issuances. Further details on the government’s participation at CMB issuances will be made as a part of the regular communication process for CMB syndications.
- The Department of Finance, with the support of the Bank and CMHC, will monitor market conditions and address concerns where possible. Market participants are encouraged to communicate with the Department of Finance, the Bank of Canada and CMHC via regular channels regarding any concerns.
This webpage provides market participants with information on upcoming government purchases of CMBs, the results of CMB purchases on behalf of the Government of Canada, and information on the government’s holdings of CMBs. Any unexpected deviations from previously announced purchase plans would be communicated in a market notice.
The process is underway to create a repurchase agreement (repo) or secured lending program for the government’s CMB portfolio, to support market well-functioning. More details on this facility will be forthcoming at a later date.
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