The Department of Finance and the Bank of Canada have updated the rule for determining the coupon rates of Government of Canada nominal bonds.

The Standard Terms state that the coupon rate for a new maturity is set to the 1/4 of 1 per cent that is closest to the average yield of competitive bids at the auction, producing an average issue price at or below 100 per cent. An amendment has been made such that, for average yields below 1/4 of 1 per cent, the coupon rate will be set to 1/4 of 1 per cent and the purchase price will be set accordingly.

The document titled Standard Terms for Auctions of Government of Canada Marketable Bonds, posted on the Bank of Canada website, has been updated accordingly and the changes will be effective 28 January 2016.

The Department of Finance and the Bank of Canada have updated the Terms and Conditions Governing the Morning Auction of Receiver General Cash Balances.

For further information, please contact:

Assistant Director
Funds Management and Banking Department
Bank of Canada
613 782-7913

Funds Management Division
Department of Finance
613 369-3898


Bank of Canada
613 782-8782