{"id":41633,"date":"2018-12-14T06:44:55","date_gmt":"2018-12-14T11:44:55","guid":{"rendered":"https:\/\/olduvai.ca\/?p=41633"},"modified":"2018-12-14T06:44:55","modified_gmt":"2018-12-14T11:44:55","slug":"for-the-first-time-ever-bank-of-canada-buys-mortgage-bonds","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=41633","title":{"rendered":"For The First Time Ever, Bank Of Canada Buys Mortgage Bonds"},"content":{"rendered":"
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For The First Time Ever, Bank Of Canada Buys Mortgage Bonds<\/span><\/a><\/h3>\n<\/div>\n
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Three weeks ago we reported that<\/a>, the Bank of Canada announced for the first time that in order to prop up the sliding Canadian housing market<\/s> help increase the tradeable float of its benchmark securities, the central bank would start buying government-backed mortgage bonds, also known as Canada Mortgage Bonds which are guaranteed by Canada Mortgage and Housing Corp.<\/p>\n

Well, it took less than a month for the BoC to execute on its intentions, because on Thursday, the central bank purchased Canada Housing Trust bonds for the first time ever, scooping up C$250 million ($187 million) of the federal agency\u2019s C$5.5 billion five-year notes which priced today.<\/p>\n

Canada Housing Trust, the special issuer of Canada Mortgage and Housing Corp.-backed debt, priced the 2.55% bonds due 2023 at a spread of 40.5 bps over comparable debt issued by the country\u2019s federal treasury, National Bank Financial, the lead coordinator of the deal, said. The housing agency first offered these\u00a0notes in September\u00a0at a relatively narrow spread of only 31.5 basis points.<\/p>\n

As we reported at the time, the Bank of Canada\u00a0said in late November\u00a0it would broaden the range of high quality assets it acquires to include purchases of government-guaranteed debt issued by federal Crown corporations. While the central bank said the expansion is “only for balance sheet management” and would give it added flexibility to offset the continued growth of bank notes, the cynical skeptics immediately accused the BoC of implicitly stepping in to prop up Canada’s deteriorating housing market.<\/p>\n

The expansion, the BoC said, would also provide more freedom to reduce its participation in primary Canadian government bond auctions and help boost the tradeable float, supporting secondary market liquidity.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

For The First Time Ever, Bank Of Canada Buys Mortgage Bonds Three weeks ago we reported that, the Bank of Canada announced for the first time that in order to prop up the sliding Canadian housing market help increase the tradeable float of its benchmark securities, the central bank would start buying government-backed mortgage bonds, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[942,23487,3341,122,23198,23488,4318],"class_list":["post-41633","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-canada-housing-trust-bonds","tag-canada-mortgage-and-housing-corporation","tag-central-bank","tag-mortgage-bonds","tag-national-bank-financial","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41633"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41633\/revisions"}],"predecessor-version":[{"id":41634,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41633\/revisions\/41634"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}