(Updates throughout, adding six- and 12-month T-bills auction results.)
The Government of Canada's latest three-month Treasury bill auction saw solid demand, with C$28.4 billion in bids for C$16.4 billion of securities, resulting in a bid-to-cover ratio of 1.58 times, according to data published on the Bank of Canada's website on Tuesday.
The average yield was 2.298%, with accepted bids ranging from 2.287% to 2.306%, according to the BoC.
The BoC purchased C$164 million, while distributors submitted C$25.9 billion in competitive bids.
Canadian investors received the vast majority of allocations at 94.1%, versus 5.9% for international accounts. This highlights strong domestic demand for short-term Canadian government debt.
The T-bills will mature on Nov. 18, 2026.
Separately, the six-month T-bill auction drew strong demand, with C$13.1 billion in distributor submissions against C$5.8 billion issued, resulting in a 2.26 bid-to-cover ratio of 2.26 times, according to data published on the BoC's website on Tuesday.
The average yield was 2.436%, with accepted bids ranging from 2.427% to 2.441%.
The BoC purchased C$58 million, while distributors submitted a further C$122 million in non-competitive bids. Canadian investors received 94.0% of allocations, versus 6.0% for international accounts.
The T-bills expire on Oct. 2, 2027.
The Government of Canada's latest 12-month T-bill auction also saw strong demand, with C$14.2 billion in distributor submissions against C$5.8 billion issued, resulting in a bid-to-cover ratio of 2.44, according to data published on BoC's website.
The average yield was 2.718%, with accepted bids ranging from 2.707% to 2.724%, according to the BoC.
Canada's central bank purchased C$58 million, while distributors submitted a further C$147 million in non-competitive bids. Canadian accounts received 80.3% of allocations, compared with 19.7% for international investors.
The T-bills expire on Aug. 11, 2027.