Market notices

The Bank of Canada strongly welcomes the decisive actions announced today by the U.S. authorities. These significant and timely measures are part of the implementation of the G7 Action Plan agreed last Friday.

The results of today's term PRA operations are as follows:

The Bank of Canada announced today it will sell $0.55 billion of its holdings of treasury bills. This transaction will partially offset the temporary increase in assets associated with the term purchase and resale transactions announced today.

In accordance with the schedule of Term PRA auctions announced on 3 October, the Bank of Canada announced today that it will enter into a 91-day Purchase and Resale Agreement (PRA) transaction as follows:

The Bank of Canada announced today further details of its temporary additional Term Purchase and Resale Agreement (PRA) facility for private sector money market instruments.

This note briefly explains the Bank of Canada initiative to allow Large Value Transfer System (LVTS) participants to substitute their non-mortgage loan portfolio for current LVTS collateral, which is composed of marketable securities that have collateral value outside of the LVTS.

Further to its 14 October announcement of new measures to provide liquidity to the Canadian financial system, the Bank of Canada releases further details on a term Purchase and Resale Agreement facility for private-sector money market instruments, and temporary acceptance of non-mortgage loan portfolios as eligible collateral for Large Value Transfer System and standing liquidity facility purposes.

Results of the 16 October 2008 Sale of Treasury Bills.

The results of today's term PRA operations are as follows:

The Bank of Canada announced today it will sell $1.8 billion of its holdings of treasury bills. This transaction will partially offset the temporary increase in assets associated with the term purchase and resale transactions announced yesterday.