In its Debt Management Strategy 2003/04, the government announced that the auction time for treasury bills would be moved to 10:30 a.m., on a trial basis, starting 22 April 2003. This implementation date has been postponed to 17 June 2003 for operational reasons.

The timing of certain cash-management and securities-lending operations conducted by the Bank of Canada is also being changed, effective 17 June 2003 (Table 1 summarizes the new auction timelines):

Cash-management bond-buyback auctions

The bidding deadline for cash-management bond buybacks will be moved from 10:30 a.m. to 11:15 a.m., with the release of results at 11:30 a.m. During the December 2002 Consultations, participants expressed a preference for this operation to occur after treasury bill auctions.

Cash-management bill auctions

Cash-management bill auctions will continue to be held at 10:30 a.m., except on days when treasury bills are auctioned. In the highly unlikely situation that the government might need to raise same-day funds on a treasury bill auction day, a cash-management bill auction could replace the Receiver General Term Deposit auction, which takes place earlier in the morning, or an additional tranche could be added to the treasury bill auction.

Securities-lending auctions

The deadline for receiving bids in Bank of Canada securities-lending operations will be moved from 11 a.m. to 11:15 a.m., with the release of results at 11:25 a.m. (see the revised version of The Bank of Canada Securities-Lending Program: Terms and Conditions). The call for tenders will occur at 11 a.m. However, on days when a treasury bill operation is already scheduled, the call for tenders will occur at 11:45 a.m., with a bidding deadline of 12 noon and the release of results at 12:10 p.m.


Table 1*
Auction Timelines Effective 17 June 2003
Call for tenders Bidding deadline Release time
Gov. of Canada treasury bills Week prior to auction at 10:40 a.m. 10:30 a.m. 10:40 a.m.
Gov. of Canada cash-management bond repurchase operations Week prior to auction at 11:30 a.m. 11:15 a.m. 11:30 a.m.
Gov. of Canada cash-management bills* Any day at 10:00 a.m. 10:30 a.m. 10:40 a.m.
Bank of Canada securities-lending
1. No treasury bill auction scheduled on the same day 11:00 a.m. 11:15 a.m. 11:25 a.m.
2. Treasury bill auction scheduled on the same day 11:45 a.m. 12:00 p.m. 12:10 p.m.
*The timelines for auctions of cash-management bills, bonds, and bond buybacks remain the same.

For further information, please contact:


Marc Pellerin
Principal
Debt Management and Settlement Systems
Bank of Canada
613 782-8429
Marc Larson
Principal
Market Analysis and Operations
Bank of Canada
613 782-7836