Change in Issuance Pattern of Treasury Bills Beginning with the 16 September Auction

On 5 August 1997, Secretary of State (International Financial Institutions) Jim Peterson announced on behalf of Finance Minister Paul Martin that beginning with the 16 September 1997 auction, the weekly cycle of Government of Canada treasury bill issuance will be replaced by a 2-week cycle.

On 9 September the results of that day's auction and the call for tender for the 16 September auction will be announced at the usual time. A new pattern of announcements for the treasury bill program will commence on 16 September, when the press release will include the results of the 16 September auction but will provide only preliminary details for the next auction (30 September for delivery 2 October).

The release will announce minimum amounts to be auctioned for the 3-month, 6-month, and 1-year treasury bills, as well as providing the amount of the Bank of Canada and client holdings and the total amount maturing on 25 September and 2 October 1997.

Final details of the 30 September auction, including final amounts for each tranche, will be announced on Tuesday, 23 September at 13:15.

Announcement of preliminary amounts will allow commencement of when-issued trading while providing flexibility in the government's management of its cash balances. The final amounts will be the same or higher than the preliminary amounts announced; they never will be lower. For example, a preliminary total amount of $7 billion, announced with the auction results, could be followed the next week by a final total amount between $7 and $10 billion.

CONTACTS:

George Nowlan
Chief, Toronto Division
Financial Markets Department
(416) 681-2404

Louis-Robert Lafleur
Chief, Montréal Division
Financial Markets Department
(514) 496-4806

Donna Howard
Assistant Chief, Ottawa
Financial Markets Department
(613) 782-8474

Michael Stockfish
Senior Representative (Economics),
British Columbia and Yukon
(604) 643-6135