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Bank of Canada Announces Term PRA Transactions

Since 19 September 2008, the Bank of Canada has extended $26 billion in seven Purchase and Resale Agreement (PRA) operations to provide liquidity to Canadian term lending markets 1. The Bank will continue to extend liquidity to the market and, in accordance with the Bank's announcement on 3 October that it will conduct term PRAs through to the end of the calendar year, the Bank today is publishing the schedule of its next eight term PRA operations. The actual amount of the 4 November auction is announced below and for each subsequent auction, it will be announced on the prior business day.

Auction (Settlement) Date New Amount (millions) Amount Maturing (millions) Term (Days) Maturity Date
4 (6)* $4,000 91 5 February
10 (13) minimum $8,000 $10,000 28 11 December
18 (20) minimum $4,000 28 18 December
25 (27) minimum $4,000 $6,000 26 23 December
2 (4) minimum $3,000 91 5 March
9 (11) minimum $4,000 minimum $8,000 28 8 January
16 (18) minimum $4,000 minimum $6,000 28 15 January
19 (23) minimum $4,000 minimum $4,000 30 22 January

* This term PRA was originally announced 3 October as part of the Bank's schedule of future term PRA transactions.

The terms for these auctions will be the same as those announced on Monday 27 October 2008 for the 28 October 28-day term PRA.

The next auction will be held on 4 November at 9:00 (ET) and the results of these operations will be announced on the Bank's web site at 10:00 (ET). The total amount of assets acquired through these term PRA operations will be announced on the Bank's web site on the settlement day by 16:45 (ET).

Participants will have the right to substitute the securities underlying the transaction on 11 December 2008 and on 8 January 2009, subject to notice by noon on the previous business day and in accordance with the Bank's Purchase and Resale Agreement.

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

Content Type(s): Press, Market notices
  1. 1. Excludes the Term PRA Facility for Private Sector Money Market.[]