Bank of Canada buys back C$591.82 million bonds in auction, issues $400 million replacement bonds

By Jennifer Chiou

New York, Aug. 24 - Bank of Canada said it bought back C$591.82 million of Government of Canada bonds in a repurchase auction on Wednesday in addition to the issuance of $400 million of 3.5% replacement bonds due Dec. 1, 2045 at 110.222.

Settlement is slated for Aug. 29.

With the replacement issue, the total amount of 3.5% bonds stands at C$1.8 billion. The allotment ratio was 37.37526%.

The government specifically repurchased C$300 million of 8% bonds due June 1, 2023, C$66,819,000 of 9% bonds due June 1, 2025 and C$225 million of 8% bonds due June 1, 2027.

The cut-off spread was negative 51.8 basis points for the 8% bonds due 2023, negative 43.4 bps for the 9% bonds and negative 28.3 bps for the 8% bonds due 2027.

After settlement on Monday, there will be C$2,877,121,000 of the 8% bonds due 2023, C$2,793,426,000 of the 9% bonds and C$5,357,435,000 of the 8% bonds due 2027 outstanding.

The bank also offered to repurchase two series of 5.75% bonds due June 1, one in 2029 and the other due in 2033. None of these bonds was repurchased.

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