Government of Canada to expand bond buyback operations

The Government announced in the 2000-01 Debt Management Strategy that it was implementing the bond buyback program on an ongoing basis. The objective of this program is to enhance the liquidity of Government of Canada securities by repurchasing less liquid outstanding bonds, financed through the issuance of newer more liquid securities.

The bond buyback program will now be expanded to include bonds with maturities across a wider range of the yield curve. Specifically,

• At each repurchase operation the maturity range of bonds eligible for repurchase will be broader.
• The program will be expanded to include securities with maturities up to and including 2022. Bonds with maturities beyond 2011 had previously not been targeted.

Buyback operations will continue to occur on the same day as regular auctions, and they will continue to be announced in Quarterly Bond Schedule. The specific bonds to be repurchased at each bond buyback operation will continue to be announced one week in advance at the Call for Tenders.

For further information, contact:

Philippe Muller
Financial Markets Department
Bank of Canada
(613) 782-8778

Michael Keenan
Financial Markets Department
Department of Finance
(613) 992-4013