Bloomberg News

Bank of Canada Buys C$1.21 Billion of Securities for One Day

October 04, 2011

(Updates with total left in payment system in fourth paragraph.)

Oct. 4 (Bloomberg) -- The Bank of Canada made C$1.21 billion ($1.14 billion) in one-day purchases of securities, under a program that aims to keep overnight lending rates close to its 1 percent target.

Earlier, the central bank said it had purchased C$750 million under the program. Today’s total is similar to yesterday’s C$1.215 billion of transactions.

The Ottawa-based bank also also said it made C$111 million in one-day loans of securities under a separate program that aims to boost the supply of government bonds and treasury bills in the market when demand is high.

The bank also increased the amount of settlement balances in the Large Value Transfer System to C$1.132 billion from the regular daily target of C$25 million. The funds are used to help settle payments between banks and brokers, and a higher amount can also encourage lower interest rates on interbank loans.

--Editors: Paul Badertscher, Vince Golle

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net


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