Operational details for upcoming secondary market purchases of Real Return Bonds issued by the Government of Canada (May 27)

As previously announced, the Bank of Canada (the Bank) launched a program to purchase Government of Canada securities in the secondary market: the Government of Canada Bond Purchase Program (GBPP).

As part of this program, the Bank is announcing further details about the operation to purchase Real Return Bonds (RRBs) in the secondary market. The Bank intends on purchasing RRBs in the secondary market once per quarter.

The objective of these purchases is to support the well-functioning of this segment of the Government of Canada securities market. Terms and conditions for the GBPP have also been published today and includes the purchase of Real Return Bonds in the secondary market.

The Bank will be buying on May 27, in a reverse auction format, up to $100 million notional per line of the following securities:

CANRRB 4.25% 12/01/21 CA135087UL60
CANRRB 4.25% 12/01/26 CA135087VS05
CANRRB 4.00% 12/01/31 CA135087WV25
CANRRB 3.00% 12/01/36 CA135087XQ21
CANRRB 2.00% 12/01/41 CA135087YK42
CANRRB 1.50% 12/01/44 CA135087ZH04
CANRRB 1.25% 12/01/47 CA135087B949

NOTE: all operations will have a T+2 settlement unless otherwise stated.

The secondary market purchases conducted by the Bank should settle with the Bank (CUID: BOCB) and not the Government of Canada.

The Bank will announce specific operational details (venue and timing) at least one day ahead of each operation.

The Bank continues to monitor market developments closely and remains committed to supporting the liquidity and efficient functioning of the Government of Canada bond market.

Financial Markets Department
Bank of Canada

Financial Markets Department
Bank of Canada

Bank of Canada