RPT-Bank of Canada adjusts nominal bond purchase rules

Fri Jan 18, 2008 2:09pm EST
 
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(Refiles to fix spelling in headline, no changes to text)

TORONTO, Jan 18 (Reuters) - The Bank of Canada said on Friday it upwardly adjusted the portion of nominal bonds it holds in a bid to ensure its holdings reflect the structure of the Government of Canada's marketable debt.

As a result, the central bank said it will increase its participation at auctions of 2-year, 10-year, and 30-year bonds to a minimum of 15 percent from 10 percent. It will also lower the bank's reliance on its participation at treasury bill auctions compared to 2007.

The Bank of Canada said its decision, effective Jan. 18, has no implications for monetary policy and is being done for balance sheet purposes only.

(Reporting by Frank Pingue; Editing by Renato Andrade)

 
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