Standard Terms for Auctions of Government of Canada Ultra Long Bonds
On behalf of the Minister of Finance, the Department of Finance and Bank of Canada are releasing today the Standard Terms for Auctions of Government of Canada Ultra Long-Bonds (UL Terms), as well as an overview of the UL Terms. The documents outline the operational framework for potential future issuance of ultra-long bonds via a modified auction format.
As indicated in the Debt Management Strategy for 2016-17, the Government may consider issuing additional ultra-long bonds in the fiscal year, subject to market conditions. Any future ultra-long bond issuance continues to be a tactical decision, and is not considered to be part of the Government’s regular borrowing program.
Given the tactical nature of ultra-long bond issuance, the timing between the release of the Call for Tenders and the modified auction will be shorter than for a regular bond auction. Should the Government decide to issue additional ultra-long bonds, a Call for Tenders will be released at least one business day prior to the operation.
Please note that for customers that are interested in participating in ultra-long bond auctions, a bidder identification number (BIN) is required ahead of the operation. A “regular BIN” could be obtained in order to participate in all Government of Canada marketable securities auctions (including ultra-long bond auctions) or an “Ultra BIN” could be obtained in order to participate only in ultra-long bond auctions. Please contact the Auction Line at (613) 782-7719 for additional information on the application process.
For further information, please contact:
Funds Management and Banking Department
Bank of Canada
Funds Management Division
Department of Finance
Bank of Canada