Bank of Canada buys back C$500 million of bonds in repurchase auction

By Angela McDaniels

Tacoma, Wash., Feb. 7 - Bank of Canada bought back C$500 million of Government of Canada marketable bonds through a cash management bond repurchase operation on Tuesday, according to a government announcement.

The bank repurchased

• C$85,859,000 of its 1.5% bonds due June 1, 2012. The cutoff yield is 0.95%;

• C$47.07 million of its 3.75% bonds due June 1, 2012. The cutoff yield is 0.95%;

• C$2,064,000 of its 5.25% bonds due June 1, 2012. The cutoff yield is 0.961%;

• C$300 million of its 1.75% bonds due March 1, 2013. The cutoff yield is 1.022%; and

• C$65,007,000 of its 3.5% bonds due June 1, 2013. The cutoff yield is 1.034%.

The allotment ratio is 86.676% for the 3.5% bonds and 100% for each of the other series.

After settlement, C$3,429,366,0000 of the 1.5% bonds, C$4,887,038,000 of the 3.75% bonds, C$8,292,754,000 of the 5.25% bonds, C$16,076,269,000 of the 1.75% bonds and C$12,066,105,000 of the 3.5% bonds will remain outstanding.

The bank offered to buy back its 1.5% bonds due March 1, 2012, 2% bonds due Sept. 1, 2012, 1.5% bonds due Dec. 1, 2012 and 5.25% bonds due June 1, 2013. None of these bonds was repurchased.

The next cash management bond repurchase operation will take place on Feb. 14.

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