As indicated in the 25 June announcement, the Bank of Canada today releases the following new schedules for its term liquidity operations commencing the week of 27 July 2009 and running through to the October fixed announcement date:

  • Term Purchase and Resale Agreement (PRA) Facility
  • Term PRA Facility for Private Sector Instruments
  • Term Loan Facility (TLF)

Conditions in funding markets have continued to improve. Indicative measures of bank funding costs – such as CDOR-OIS spreads – have declined steadily from the September 2008 peak to stabilize at their lowest levels since the onset of the financial crisis. The results of the most recent Term PRA operations and the lack of coverage in other term liquidity operations are consistent with this assessment. Against this background, the minimum amounts to be auctioned in the Term PRA and the TLF facilities have been reduced, as has the auction amount for the Term PRA Facility for Private Sector Instruments.

To reinforce the Bank’s conditional commitment to maintain the overnight rate at 1/4 per cent until the end of the second quarter of 2010, the minimum and maximum bid rates for all regular Term PRA operations will continue to be at the target rate and the Bank Rate, respectively. The maturity of the longest Term PRA is being reduced from 12 months to 9 months, so that there will be maturities through the end of the second quarter of 2010. There will be an increased emphasis on this longest maturity, with the one-month maturity replaced by an additional nine-month maturity in every four-week cycle.

With respect to the Term PRA for Private Sector Instruments, the Bank has modified the maximum allocation available to any bidder. Effective 27 July 2009, each individual bidder will have a bidding limit that is the greater of either: (i) 25 per cent of the announced auctioned amounts, or (ii) $250 million.

As indicated in the 25 June announcement, Term PRA auctions will continue through to at least the end of January 2010. Auctions of the TLF and of Term PRA for Private Sector Instruments will continue through to at least the end of October 2009.

The Bank of Canada remains committed to providing liquidity, as required, to support the stability of the Canadian financial system and the functioning of financial markets.

Further details on the Bank of Canada term liquidity facilities are available in the Terms and Conditions for the Term PRA Facility, the Terms and Conditions for the Term PRA Facility for Private Sector Instruments, and the Terms and Conditions for the Term Loan Facility.

The new schedules are as follows:

Term PRA Facility
Auction (Settlement)
Date
New Amount
(millions)
Amount Maturing
(millions)
Term (Days) Maturity Date
July 2009
27 (29) minimum $1,000 273 28 April 2010
August 2009
4 (6) minimum $1,000 167 20 January 2010
10 (12) minimum $1,000 $3,000 273 12 May 2010
17 (19) minimum $1,000 $4,000 85 12 November 2009
24 (26) minimum $1,000 274 27 May 2010
31 (2 september) minimum $1,000 169 18 February 2010
September 2009
8 (10) minimum $1,000 $3,000 272 9 June 2010
14 (16) minimum $1,000 84 9 December 2009
21 (23) minimum $1,000 273 23 June 2010
28 (30) minimum $1,000 168 17 March 2010
October 2009
5 (7) minimum $1,000 $2,250 273 7 July 2010
13 (15) minimum $1,000 84 7 January 2010
19 (21) minimum $1,000 273 21 July 2010
Term PRA Facility for Private Sector Instruments
Auction (Settlement)
Date
New Amount
(millions)
Amount Maturing
(millions)
Term (Days) Maturity Date
July 2009
28 (30) $500 $500 84 22 October 2009
August 2009
5 (7) $500 $500 27 3 September 2009
11 (13) $500 $700 29 11 September 2009
18 (20) $500 maximum $1,000 28 17 September 2009
25 (27) $500 $495 84 19 November 2009
September 2009
1 (3) $500 maximum $500 28 1 October 2009
9 (11) $500 maximum $500 27 8 October 2009
15 (17) $500 maximum $500 29 16 October 2009
22 (24) $500 $500 84 17 December 2009
29 (1 October) $500 maximum $500 28 29 October 2009
October 2009
6 (8) $500 maximum $500 28 5 November 2009
14 (16) $500 maximum $500 28 13 November 2009
20 (22) $500 maximum $500 84 14 January 2010
Term Loan Facility
Auction (Settlement)
Date
New Amount
(millions)
Term (Days) Maturity Date
July 2009
29 (30) minimum $1,000 28 27 August 2009
August 2009
6 (7) minimum $1,000 27 3 September 2009
12 (13) minimum $1,000 29 11 September 2009
19 (20) minimum $1,000 28 17 September 2009
26 (27) minimum $1,000 28 24 September 2009
September 2009
2 (3) minimum $1,000 28 1 October 2009
10 (11) minimum $1,000 27 8 October 2009
16 (17) minimum $1,000 29 16 October 2009
23 (24) minimum $1,000 28 22 October 2009
30 (1 October) minimum $1,000 28 29 October 2009
October 2009
7 (8) minimum $1,000 28 5 November 2009
15 (16) minimum $1,000 28 13 November 2009
21 (22) minimum $1,000 28 19 November 2009
Substitution Schedule
Notice Date 1 Substitution Date
22 July 2 24 July
5 August 7 August
19 August 21 August
2 September 4 September
16 September 18 September
30 September 2 October
14 October 16 October