Canada is increasing treasury bill sales as the government prepares to meet upcoming bond maturities in August and September, according to National Bank of Canada in a Tuesday note.
Tuesday's T-bill auction size is C$28 billion, up C$2 billion from two weeks ago, the bank wrote in the note.
The Bank of Canada is expected to purchase C$280 million, or 1% of the offering, while investors will absorb C$2.6 billion in net new sales as C$25.4 billion of bills mature this week, according to the bank.
Including last week's cash management bill auction, total outstanding T-bills are set to rise to C$309.4 billion by the end of the week, well above the C$268 billion target outlined in spring and marking the highest level since last summer, said the bank.
A similar trend occurred last year, when Canada increased T-bill sales to a peak of around C$310 billion before reducing the outstanding stock in the fall, according to National Bank.