Today, along with the release of the consumer price index (CPI) for May 2007, Statistics Canada converted the official time base reference period for the CPI (the period for which the value 100 is assigned to the index) from 1992 to 2002 . This conversion was previously announced on 23 January 2007. As indicated in the Terms and Conditions of the Real Return Bonds, changes to the official time base reference period require the Government of Canada to publish, to three decimal places, the conversion factor that is used to rebase historical CPI data. The official conversion factor, rounded to three decimal places, is 1.190. The new Reference Base CPI for each outstanding RRB, effective 19 June 2007, is given below based on the above conversion factor:

Coupon (%) Bond Maturity New Reference CPIBase Previous Reference CPIBase
4.25 1 December 2021 83.07713 98.86178
4.25 1 December 2026 87.82571 104.51260
4.00 1 December 2031 91.38249 108.74516
3.00 1 December 2036 102.99160 122.56000
2.00 1 December 2041 111.21849 132.35000

RRB index ratios calculated on and after 19 June 2007 will be based on the new official time base reference period. Historical RRB index ratios calculated prior to this date will not be revised. The Index Ratio table, for June 2007 posted on the Bank of Canada's website, has been revised to take into account the change to the official time base reference period for transactions settling on or after 19 June.

Cynthia Richardson
Chief
Financial Markets Division
Department of Finance
613 947-3919
Marc Larson
Assistant Director
Financial Markets Department
Bank of Canada
613 782-7836