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Bank of Canada Announces the Expansion of its Bond Buyback Program and Term Repo Operations

In order to support the continuous functioning of financial markets through the provision of liquidity, the Bank of Canada announced two measures today.

First, acting as fiscal agent, the Bank will broaden the scope of the current Government of Canada bond buyback program. This is intended to add market liquidity and support price discovery. Until further notice, buybacks will extend across all benchmark maturity sectors and will be conducted at least weekly. Regular weekly operations will be conducted on a switch basis. Cash buybacks will be conducted following nominal bond auctions.

The first operation will be a $500 million switch operation in the 30-year sector held on Monday March 16. Additional program details are forthcoming, including the timing of the first operation.

Second, to proactively support interbank funding, the Bank of Canada will temporarily add new Term Repo operations with terms of 6 and 12 months.  These operations will occur bi-weekly starting with the first operation on Tuesday, 17 March 2020.  Details of the first Term Repo operation are as follows:

Amount Auction Date Settlement Date Term (Days) Maturity Date
$4 billion 17 March 2020 19 March 2020 168 3 September 2020
$3 billion 17 March 2020 19 March 2020 350 4 March 2021

Regular 1-month and 3-month Term Repo operations will remain in effect but could change with regards to size, frequency and term depending on prevailing market conditions.

Term Repo terms and conditions remain in effect. The results of the 6- and 12-month operations will be announced on the Bank's web site by Market Notice.

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

For market participants:

Scott Kinnear
Financial Markets Department
Bank of Canada
613 782-7723

For media:

Media Relations
Bank of Canada
613 782-8782

Content Type(s): Press, Market notices