Bank of Canada accepts C$1 billion of bonds in repurchase auction

By Angela McDaniels

Tacoma, Wash., Sept. 14 - Bank of Canada said that C$1 billion of bonds were accepted for repurchase under a cash management bond repurchase operation auction on Sept. 14.

The accepted bonds include:

• C$4 million of 2.75% bonds due Dec. 1, 2010;

• C$339 million of 1.25% bonds due June 1, 2011;

• C$200 million of 1% bonds due Sept. 1, 2011; and

• C$457 million of 3.75% bonds due Sept. 1, 2011.

The cutoff yield was 0.955% for the 2.75% bonds, 1.201% for the 1.25% bonds and 1.274% for the 1% bonds and 3.75% bonds.

The allotment ratio was 49% for the 1.25% bonds and 100% for the other bonds.

Following settlement of the repurchases on Sept. 16, the amount of bonds outstanding will be C$7,714,102,000 for the 2.75% bonds, C$7,666,000,000 for the 1.25% bonds, C$8,132,000,000 for the 1% bonds and C$7,353,862,000 for the 3.75% bonds.

The government also offered to repurchase its C$9,368,269,000 of 6% bonds due June 1, 2011, C$606,151,000 of 8.5% bonds due June 1, 2011 and C$9.5 billion of 1.25% bonds due Dec. 1, 2011. None of these bonds were bought back.

The next auction will take place Sept. 21.

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