In light of ongoing pressures in term lending markets, the Bank of Canada will provide additional liquidity through term Purchase and Resale Agreements (term PRAs) according to the following schedule:

Auction (Settlement)
Date
New Amount (millions) Amount Maturing (millions) Terms (Days) Maturity Date
October
1 (2) minimum $2,000 28 30 Oct.
8 (9) minimum $1,000 91 8 Jan.
16 *(17) minimum $2,000 $2,000 27 13 Nov.
22 (23) minimum $1,000 91 22 Jan.
29 (30) minimum $2,000 minimum $2,000 28 27 Nov.

* The term PRA auction on 16 October was announced on 23 September.

The list of eligible securities for these transactions is the same as the full list of securities eligible as collateral for the Bank's Standing Liquidity Facility (SLF) and is available at: https://www.bankofcanada.ca/en/financial/securities.pdf

Securities used in the term PRA transactions will be subject to the same margin requirements as those applicable in SLF transactions.

These term PRAs will be transacted with Primary Dealers (PDs). 1 Each PD will have a bidding limit of 25% of the auctioned amount and will be subject to a maximum aggregate of all outstanding Term PRAs. For PDs rated A or higher, the maximum aggregate limit will be 25% of the total outstanding; for PDs rated either BBB or lower or those without a rating, the limit will be 12.5%.

Details of each operation will be announced by the previous business day. On the day of the auction, the results of these operations will be announced on the Bank's web site at 10:15 (ET) and the total amount of assets acquired on any day through term PRA operations by 16:45 (ET).

The Bank will continue to provide additional term liquidity as long as conditions in financial markets warrant.

For further information, please contact:
Jeremy Harrison
613 782-8782