Maturity Dates and Target Range Sizes for 3-Year Bonds
Earlier this year, the Government of Canada announced the reintroduction of 3-year bonds as part of the Debt Management Strategy for 2016-17, with issuance details for this sector to be made public following consultation with market participants.
The Department of Finance and the Bank of Canada have completed consultations, and would like to thank all parties for their comments which have been carefully considered in the development of the following plan to re-introduce 3-year bonds.
The Government is planning for 3-year bond auctions to be re-openings of previously issued 5-year bonds, though reserves the right to issue a fungible bond instead in the event of a significant difference in the prevailing rate for the 3-year sector and the coupon rate of the applicable previous 5-year bond. The Government will consult with primary dealers as part of its regular Call for Tenders process under this circumstance.
Maturity Date Patterns and Bond Size Ranges per Sector
billions of dollars
| Feb. | Mar. |
May |
June |
Aug. | Sept. | Nov. | Dec. | |
|
2-year |
12-18 |
12-18 |
12-18 |
12-18 |
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|
3-year1 |
10-16 |
10-16 |
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|
5-year |
14-20 |
14-20 |
||||||
|
10-year |
12-18 |
|||||||
|
30-year2 |
10-16 |
|||||||
|
Real Return Bond2,3 |
10-16 |
|||||||
|
Total |
12-18 |
24-36 |
12-18 |
12-18 |
12-18 |
24-36 |
12-18 |
10-16 |
|
Note: These amounts do not include coupon payments and represent new issuance in the sector. 1 The size of the first 3-year bond for 2016-17 may be below the target size range due to issuance of 3-year bonds beginning in the second quarter of the fiscal year. 2 30-year and Real Return Bond size ranges are generally reached over four and three years of issuance respectively. 3 Includes estimate for inflation adjustment. The 30-year nominal bond and Real Return Bond do not mature in the same year. |
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The dates of future 3-year bond auctions, alongside dates of auctions in all sectors, will be announced through the Quarterly Bond Schedule that is published on the Bank of Canada website prior to the start of each quarter.
For further information, please contact:
Assistant Director
Funds Management and Banking Department
Bank of Canada
613 782-7913
Chief
Funds Management Division
Department of Finance
613 369-3898
Media:
Bank of Canada
613 782-8782