MNI BRIEF: BOC Resuming T-Bill Buys, Bonds Unlikely Until 2027

Canada's central bank said Thursday it will restart buying treasury bills as part of more normal balance sheet management on Dec. 16, while a similar move for federal bonds probably won't be needed until 2027.

Bills will be acquired at auctions on a "non-competitive basis" according to a statement. The Bank of Canada starting Dec. 9 will start publishing intended purchase amounts in advance of each treasury bill auction.

"In steady state, the Bank will hold a mix of GoC treasury bills, GoC bonds and term repos on its balance sheet. The Bank will aim to have the amount of the floating-rate assets, comprised mostly of term repos and treasury bills, broadly matching the amount of floating-rate liabilities, which include settlement balances." (See: MNI: Trudeau Deficits, Not BOC, Drove Covid Inflation- CD Howe)