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

By Angela McDaniels

Tacoma, Wash., March 20 - 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$250,836,000 of its 2% bonds due Sept. 1, 2012. The cutoff yield is 1.021%;

• C$85 million of its 1.5% bonds due Dec. 1, 2012. The cutoff yield is 1.071%; and

• C$164,164,000 of its 1.75% bonds due March 1, 2013. The cutoff yield is 1.105%.

The allotment ratio is 22.47% for the 1.75% bonds and 100% for the other two series.

The purchases will settle on March 22.

After settlement, C$11,414,548,000 of the 2% bonds, C$13,007,171,000 of the 1.5% bonds and C$14,054,105,000 of the 1.75% bonds will remain outstanding.

The bank also offered to buy back its 1.5% bonds due June 1, 2012, 3.75% bonds due June 1, 2012, 5.25% bonds due June 1, 2012, 3.5% bonds due June 1, 2013 and 5.25% bonds due June 1, 2013. The bank did not repurchase any of these bonds.

The next cash management bond repurchase operation will take place March 27.

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