The Bank of Canada and the Department of Finance are announcing today that the maximum repurchase amount for Government of Canada Cash Management Bond Buyback (CMBB) operations will no longer be fixed at $2 billion per operation and instead be determined by available excess cash at the time of the operation.
The purpose of the CMBB operation is to help the Government of Canada manage its cash flows ahead of bond maturities. The operations have no monetary policy implications. This added flexibility will help smooth future government cash flows given the increased size of bond maturities. Consistent with the current process, the size of these operations will fluctuate from week to week and may be cancelled if not needed.
The operations will continue to be conducted in the same manner as currently announced. The preliminary maximum repurchase amount will be published in the preliminary Call for Tender for each CMBB operation which is published at 3:30 p.m. (ET) one week before the auction. The final repurchase size will be announced in the Final Call for Tenders at 9:00 a.m. (ET) on the day of the operation.
For further information, please contact:
Director
Markets and Banking Department
Bank of Canada
613‑782‑7723
Senior Director
Funds Management Division
Department of Finance Canada
613‑301‑6836
Media Relations
Bank of Canada