Additional release time for calls for tenders for cash management bills

Effective immediately, calls for tenders for cash management bills may be released on any day at either 10:00 a.m. or 4:00 p.m. The addition of a later time to the existing Auction Timetable will increase the ability of the government's cash managers to raise balances on short notice in response to unexpected developments. This change was discussed with market participants during the Debt Strategy Consultations for 2004/05 held in January 2004.

The later release time re-establishes an option that had been available to government cash managers during the mid-1990s. It is anticipated that calls for tenders at this later time will be infrequent and would involve an auction on the following day for same-day settlement.

Auctions of cash management bills will continue to be held at 10:30 a.m., except on days when treasury bills are auctioned or when switch operations are scheduled. In the unlikely situation that the government needs to raise same-day funds on either of these occasions, the cash management bill would be auctioned at 9:15 a.m. in place of the usual auction of Receiver General term deposits.

For further information, please contact:
Ron Allenby
Assistant Director
Financial Markets Department
Bank of Canada
613 782-8046
Marc Larson
Principal Trader/Analyst
Financial Markets Department
Bank of Canada
613 782-7836

Content Type(s): Press, Market notices