In March 2025, the Bank restarted regular term repo operations as part of its return to normal balance sheet management.
As part of this transition, the Bank is now reintroducing 1-month term repos of National Housing Act Mortgage-Backed Securities. NHA MBS were first accepted as eligible securities for the term repo program in September 2019, but these operations were suspended in March 2020 when term repo operations were expanded to support liquidity during the Covid-19 pandemic.
NHA MBS term repo will be conducted separate from the regular term repo operations. The first operation will be on October 15, 2025 and the term of the NHA MBS repo will be 1-month. Operational details will be released in the preliminary call for tender on October 8 with the final amount and minimum bid rate confirmed on October 15. Further information on the preliminary quarterly schedule, operations and auction results can be found here.
Additional updates are also being made to the terms and conditions governing regular term repo operations. Effective October 1, 2025, federal and provincial inflation linked bonds will now be eligible. In addition, participants will now be able to process substitutions on an unlimited basis using the dealer interface for settlement on a T+1 basis. Please see the terms and conditions for additional information.
Further adjustments to the term repo program, such as increased operational frequency and/or additional terms, may also be considered over the coming months to ensure the program’s effectiveness.
For further information, please contact:
Director
Financial Markets Department
Director
Financial Markets Department
Source(s):
Term repo operations