In accordance with the schedule of term purchase and resale agreement (PRA) auctions for private sector instruments announced on 21 July (see schedule), the Bank of Canada announced today that it will conduct a term PRA operation for private sector instruments as follows:

Amount Minimum Bid
Auction Date Settlement Date Term (Days) Maturity Date
$500 million 0.500% 9 September 2009 11 September 2009 27 8 October 2009

Primary Dealers (PDs) are asked to submit the bids of their indirect bidders between 9:15 and 9:30 (ET) on the day of the auction to the Bank of Canada. The results of this operation will be announced on the Bank's web site at 10:30 (ET). PDs must notify the Bank of Canada of the securities that will be used in the operation, by their indirect bidders, by 12:00 (ET) on the day of the auction.

The total amount of assets acquired through this term PRA operation will be announced on the Bank's web site on the settlement day by 16:45 (ET). This operation will also be reflected on the Bank of Canada's balance sheet.

Further details for this operation, including the eligible securities, are available in the Terms and Conditions for the new Term PRA for Private Sector Instruments.

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

Market participants requesting further information are asked to contact

For press enquiries, please contact:
Jeremy Harrison
613 782-8782