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Government of Canada to Resume Cash Management Bond Buyback Program

The Bank of Canada and the Department of Finance are announcing the resumption of the Government of Canada Cash Management Bond Buyback (CMBB) program. The resumption of this treasury management operation is intended to effectively manage Government of Canada cash flows ahead of large bond maturities and has no monetary policy impact.

CMBB operations will resume Tuesday, November 8, 2022 and will be conducted on a weekly basis. The preliminary Call for Tenders will be communicated one week prior to the auction at 15:30 (ET), with the Final Call for Tenders at 9:00 (ET) on the day of the operation. In certain situations, a weekly operation may not be conducted, typically just in advance of a bond maturity. In these cases, a Call for Tenders will not be released.

The preliminary Call for Tenders will indicate an initial maximum amount that may be repurchased, with the final Call for Tenders that may increase the maximum amount. The operational range for buybacks will be between $500 million and $2 billion.

Government of Canada bonds with the following criteria will be eligible for repurchase:

  1. Term to maturity of up to 18 months from CMBB auction date.
  2. Total amount of maturing bond is greater than $12 billion.
  3. Total free float amount (the amount not held by the Bank of Canada) of the maturing bond is greater than $8 billion.

Please refer to the updated Terms and Conditions for Cash Management Bond Buybacks.

For further information, please contact:

Financial Markets Department
Bank of Canada

Acting Director
Funds Management Division
Department of Finance Canada

Content Type(s): Press, Market notices