December 17, 2001 The Canadian Fixed-Income Market: Recent Developments and Outlook Bank of Canada Review - Winter 2001–2002 Éric Chouinard, Zahir Lalani The Canadian fixed-income market is in the midst of a structural transformation similar to those occurring in other national financial markets around the world. The authors examine recent developments and trends in the market and discuss their possible effects. The simultaneous shrinking of the federal government's financial requirements and steady rise in issues of corporate securities have significantly altered the composition of Canada's fixed-income market. Government of Canada securities constitute a predominant portion of outstanding fixed-income securities and play a pivotal role, serving as benchmarks for the valuation of other traded securities and as a hedging vehicle for market participants trying to control their exposure to risk. The reduced issuance of federal government securities has contributed to a decline in the liquidity of the benchmark market. This raises broader issues regarding the future of the Canadian fixed-income market, since the corporate market is still fairly underdeveloped and illiquid compared with that for Government of Canada issues. There are thus currently few benchmark and hedging alternatives. The federal government is, however, committed to preserving the integrity of the market for benchmark issues and is adopting initiatives to enhance market liquidity and alleviate some of the pressures on the effective supply of these securities. Another evolving trend in the market is the emergence of electronic trading platforms. These platforms have the potential to facilitate the price-discovery mechanism, increase cost efficiency, and improve the liquidity and transparency of the market. Content Type(s): Publications, Bank of Canada Review articles
August 28, 2017 Quarterly Financial Report - Second Quarter 2017 Quarterly Financial Report - Second Quarter 2017 - For the period ended 30 June 2017 Content Type(s): Publications, Quarterly Financial Report
March 8, 2007 Meeting Global Economic Challenges: The Need for Flexibility Remarks David Dodge Calgary Chamber of Commerce Calgary, Alberta Our primary objective at the Bank is to promote the economic and financial welfare of Canadians. Over the years, we have learned that the best contribution that monetary policy can make in this regard is to give Canadians confidence in the future value of their money. We do this by keeping inflation low, stable, and predictable. Content Type(s): Press, Speeches and appearances, Remarks
September 2, 1999 Year 2000 and Contingency Arrangements for the Provision of Liquidity by the Bank of Canada Media Relations The financial sector is a crucial part of the Canadian economy and is well prepared for the year 2000. Content Type(s): Press, Press releases
July 14, 2021 Bank of Canada maintains policy rate and forward guidance, adjusts quantitative easing program Media Relations Ottawa, Ontario The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. Content Type(s): Press, Press releases
May 21, 2021 Quarterly Financial Report - First Quarter 2021 Quarterly Financial Report - First Quarter 2021 - For the period ended March 31, 2021 Content Type(s): Publications, Quarterly Financial Report
October 30, 2023 Opening Statement before the House of Commons Standing Committee on Finance Opening statement Tiff Macklem House of Commons Standing Committee on Finance Ottawa, Ontario Content Type(s): Press, Speeches and appearances, Opening statements
Competing Currencies in the Laboratory Staff working paper 2017-53 Janet Hua Jiang, Cathy Zhang We investigate competition between two intrinsically worthless currencies as a result of decentralized interactions between human subjects. We design a laboratory experiment based on a simple two-country, two-currency search model to study factors that affect circulation patterns and equilibrium selection. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C9, C92, D, D8, D83, E, E4, E40 Research Theme(s): Financial markets and funds management, International markets and currencies, Models and tools, Economic models, Money and payments, Digital assets and fintech
December 8, 2021 Bank of Canada maintains policy rate and forward guidance Media Relations Ottawa, Ontario The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. Content Type(s): Press, Press releases
Does US or Canadian Macro News Drive Canadian Bond Yields? Staff analytical note 2018-38 Bruno Feunou, Rodrigo Sekkel, Morvan Nongni-Donfack We show that a large share of low-frequency (quarterly) movements in Canadian government bond yields can be explained by macroeconomic news, even though high-frequency (daily) changes are driven by other shocks. Furthermore, we show that US macro news—not domestic news— explains most of the quarterly variation in Canadian bond yields. Content Type(s): Staff research, Staff analytical notes JEL Code(s): C, C2, C22, E, E4, E43 Research Theme(s): Financial markets and funds management, Market functioning, Monetary policy, Monetary policy framework and transmission, Structural challenges, International trade, finance and competitiveness