Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Bank of Canada's balance sheet shrank this week from record highs for the first time since the Covid-19 pandemic took hold, down CAD4 billion to CAD543 billion, led by a drop in federal t-bills.
Treasury bill assets declined to CAD134 billion as of Aug. 5 from CAD140 billion a week earlier, according to figures the Ottawa-based bank posted Friday. Federal bond holdings climbed to CAD198 billion from CAD196 billion, less than the BOC's pledge to buy at least CAD5 billion a week, though Monday was a holiday.
Corporate repos were steady for a third week at CAD186 billion.
Governor Tiff Macklem has pledged aggressive QE to underpin what he says will be a tepid recovery. The purchases will also complement his plan to keep rates at 0.25% until inflation stabilizes at 2%.
The overall decline is the first since the week of March 4.
The BOC also reported that it had bought about CAD1 billion of Quebec's provincial government bonds as of June 30, and CAD1.9 billion of Ontario bonds. Those figures are reported with a one-month lag.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.