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Archived - Government of Canada Securities - July 2006
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- Government of Canada Securities 2006 -
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- Canadian Economy | Primary Market | Secondary Market -
Canadian Economy
Selected Canadian economic statistics
| 2005 | 2006 | ||||
|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | |
| Annualized growth rates | (per cent) | ||||
| Real gross domestic product | 2.1 | 3.4 | 3.5 | 2.6 | 3.8 |
| Final domestic demand | 5.7 | 3.9 | 4.1 | 4.7 | 5.0 |
| Employment growth | 0.6 | 1.7 | 1.5 | 2.4 | 1.6 |
| Other | |||||
| Unemployment rate | 7.0 | 6.8 | 6.8 | 6.5 | 6.4 |
| Current account balance | |||||
| (percentage of GDP) | 1.0 | 1.4 | 2.7 | 3.8 | 3.0 |
| Source: Statistics Canada. | |||||
Upcoming economic data releases of interest
| July | August | September |
|---|---|---|
| June CPI (July 21) |
July Labour Force Survey (August 4) |
August Labour Force Survey (September 8) |
| May GDP (July 31) |
July CPI (August 22) |
August CPI (September 19) |
| June GDP (August 31) |
July GDP (September 29) |
|
| National and Economic Accounts April-June 2006 (August 31) |
||
Primary Market
Recent Government of Canada bond auction results
| Auction date | Term | Maturity date | Coupon rate | Issue amount | Average price | Average yield | Auction coverage** | Tail*** |
|---|---|---|---|---|---|---|---|---|
| (years) | (%) | (millions of dollars) | (%) | (basis points) | ||||
| June 14, 2006 | 2 | December 1, 2008 | 4.25 | 3,400 | 99.985 | 4.257 | 2.579 | 0.2 |
| May 31, 2006 | 30 | December 1, 2036 | 3* | 450 | 127.138 | 1.834 | 2.325 | n.a. |
| May 17, 2006 | 5 | September 1, 2011 | 3.75 | 2,100 | 97.318 | 4.323 | 2.535 | 0.3 |
| April 19, 2006 | 10 | June 1, 2016 | 4 | 2,300 | 96.130 | 4.480 | 2.544 | 0.4 |
| * Real Return Bond. **Coverage is defined as the ratio of total bids at auction to the amount auctioned. ***Tail is defined as the high accepted yield minus the average yield. Source: Bank of Canada. |
||||||||
Government of Canada bond auctions
| Type of issue | Auction date (2006) | Further details of issue (2006) | Dated and delivered (2006) | Amount maturing* |
|---|---|---|---|---|
| (millions of dollars) | ||||
| 30-year | July 19 | July 13 | July 24 | 0 |
| 10-year | August 2 | July 27 | August 8 | 0 |
| 5-year | August 16 | August 10 | August 21 | 0 |
| 2-year | August 30 | August 24 | September 1 | 5,194,149,000 |
| Real Return Bond | September 27 | September 21 | October 2 | 0 |
| Note: In addition, this quarter seven operations are planned under the Government of Canada bond repurchase program. Four repurchase operations will be held in conjunction with each nominal bond auction, and three switch repurchase operations will take place: one on July 6 in the 20-year sector, one on July 26 in the 5-year sector and one on September 14 in the 10-year sector. Further details will be released on the Thursday prior to these operations. The target amount for the repurchase this quarter is $2.2 billion. *Maturity of $768 billion on October 1, 2006. Source: Bank of Canada. |
||||
Government of Canada bond market benchmarks
| Term | Maturity | Coupon | Amount
outstanding |
Yield (June 29, 2006) |
|---|---|---|---|---|
| (%) | (millions of dollars) | (%) | ||
| Fixed-coupon | ||||
| 2-year | June 1, 2008 | 3.75 | 3,000 | 4.38 |
| 5-year | September 1, 2010 | 4.00 | 9,459 | 4.47 |
| 10-year | June 1, 2015 | 4.50 | 10,300 | 4.60 |
| 30-year | June 1, 2033 | 5.75 | 13,410 | 4.64 |
| Real return | ||||
| 30-year | December 1, 2026 | 4.25 | 5,250 | 1.91 |
| Source: Department of Finance. | ||||
Upcoming Government of Canada marketable bond maturities
| July-September | October-December | January-March | April-June |
|---|---|---|---|
| 2006 | 2006 | 2007 | 2007 |
| (millions of dollars) | |||
| 5,194 | 11,138 | 192 | 12,630 |
| Outstanding Government of Canada foreign currency debt | |
| (C$ millions)* | |
| Canada bills | 1,685 |
| Canada notes | 984 |
| Outstanding under EMTN program | 1,406 |
| 63⁄4% US$ bonds maturing August 28, 2006 | 1,111 |
| 65⁄8% NZ$ bonds maturing October 3, 2007 | 342 |
| 47⁄8% EUR bonds maturing July 7, 2008** | 1,797 |
| 51⁄4% US$ bonds maturing November 5, 2008 | 2,779 |
| *At par value, adjusted for exchange rates as of June 29, 2006. ** Original issue in Deutsche Marks was redenominated into euros on February 19, 1999. Source: Bank of Canada. |
|
Secondary Market
Government securities distributors
- Bank of Montreal (treasury bills only)
- Beacon Securities Limited
- BMO Nesbitt Burns Inc. (marketable bonds only)
- Canaccord Capital Corp.
- Canadian Imperial Bank of Commerce (treasury bills only)
- Casgrain & Company Limited
- CIBC World Markets Inc. (marketable bonds only)
- CTI Capital Inc.
- Desjardins Securities
- Deutsche Bank Securities Limited
- Golden Capital Securities Limited
- HSBC Bank Canada (treasury bills only)
- HSBC Securities (Canada) Inc. (marketable bonds only)
- Laurentian Bank Securities Inc.
- Merrill Lynch Canada Inc.
- J.P. Morgan Securities Canada Inc.
- National Bank Financial Inc.
- Ocean Securities Inc.
- Odlum Brown Limited
- RBC Dominion Securities Inc.
- Scotia Capital Inc.
- The Toronto-Dominion Bank
Government of Canada long-term credit ratings
| Standard & Poor's | Moody's Investors Service | Dominion Bond Rating Service | |
|---|---|---|---|
| Current | Current | Current | |
| Domestic debt - Trend |
AAA Stable |
Aaa Stable |
AAA Stable |
| Foreign debt - Trend |
AAA Stable |
Aaa Stable |
AAA Stable |
Except as noted, the information in Government of Canada Securities is based upon data available as of June 30, 2006.
For further information, contact Ian Blachford at 613-992-6386.
For additional copies or subscription inquiries, please contact the Distribution Centre at 613-995-2855.
