The Bank of Canada announced today it will sell $1.8 billion of its holdings of treasury bills. This transaction will offset the temporary increase in assets associated with outstanding term purchase and resale transactions. Details of the transaction are as follows:

Treasury Bill Maturity and offering amount: 2008.06.12 $1,000 million
2008.06.26 $800 million
Transaction Date: 30 May 2008
Settlement Date: 30 May 2008
Eligible Participants: Primary dealers of Government of Canada securities
Maximum Bid Amount: The greater of 25 per cent of amount offered per treasury bill or $500 million
Minimum Bid Amount: $5 million
Bid Increment: $1 million

Bids must be submitted on a yield basis, to three decimal places, by telephone by 9:45 on the transaction date, with confirmations to follow by facsimile. Participants may submit up to 3 bids per treasury bill.

The Bank of Canada reserves the right to accept or reject any or all bids, in whole or in part, including without limitation, the right to accept less than the total amount specified above.

Winning bidders will be notified by phone following the allotment of the securities. Summary results will be published on the Bank of Canada's website by noon on the transaction date.