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Bank of Canada Announces Details of its Final Term PRA for Private Sector Instruments Operations

In accordance with the 22 September Bank of Canada announcement that the term purchase and resale agreement (PRA) auctions for private sector instruments will expire at the end of October, the Bank announced today the details of the final two term PRA operations for private sector instruments:

Amount Minimum Bid
Auction Date Settlement Date Term (Days) Maturity Date
$500 million1 0.500% 20 October 2009 22 October 2009 84 14 January 2010
$500 million 0.500% 27 October 2009 29 October 2009 28 26 November 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 each 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 each term PRA operation will be announced on the Bank's web site on the settlement day by 16:45 (ET). These operations will also be reflected on the Bank of Canada's balance sheet.

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

The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets.

For press enquiries, please contact:

613 782-8782

Content Type(s): Press, Market notices