1. Cash management buybacks

The Debt Management Strategy 2000-01 (released 23 March 2000) noted that the Bank of Canada and the Department of Finance were assessing the potential for expanding the existing bond buyback program to include cash management purposes.

The target securities for these additional operations would be large outstanding bonds with less than 12 months to maturity.

Consultations with market participants will take place shortly with a view to implementing the program on a trial basis later this year.

2. Two-year bond maturities

In 1998, the maturity dates of the quarterly 2-year bond auctions were switched from March and September to June and December to smooth the upcoming bond maturity pattern, and thus, facilitate cash management.

Views of market participants will be sought by the Bank and the Department of Finance on the possibility of reverting back to March and September maturities, again for maturity and cash management purposes, starting with the 2-year auction in December 2000.

It is anticipated that a decision will be confirmed when the next Quarterly Bond Schedule is released in early September.


For further information, contact:

Ron Morrow
Bank of Canada
613 782-8580
Daryl Merrett
Bank of Canada
613 782-7876