Archived - Debt Management Report 2021–2022

Table of Contents

Foreword by the Deputy Prime Minister and Minister of Finance

Purpose of This Publication

Other Information

Executive Summary

Introduction
Highlights for 2021-22

Part I 2021-22 Debt Management Context

Composition of Federal Debt
Sources of Borrowings and Uses of Borrowings
Borrowing Authorities
Government of Canada Credit Rating Profile

Part II Report on Objectives, Strategic Direction and Principles

Objectives, Strategic Direction and Principles
Raising Stable and Low-Cost Funding, and Strategic Direction
Maintaining a Well-Functioning Government Securities Market

Part III Report on the 2021-22 Debt Program

Domestic Marketable Bonds
Treasury Bills and Cash Management Bills
Foreign Currency Debt
Retail Debt
Cash Management
Investment of Receiver General Cash Balances

Annex 1 Completed Treasury Evaluation Reports

Annex 2 Debt Management Policy Measures Taken Since 1997

Annex 3 Glossary

Annex 4 Contact Information

Reference Tables

Foreword by the Deputy Prime Minister and Minister of Finance

Canadians and the Canadian economy have faced nearly three years of historic challenges. When COVID-19 first reached our shores, our government introduced unprecedented emergency measures to keep Canadians safe, protect their jobs, and keep the Canadian economy afloat. It was a muscular plan—and it worked.

Our economy is now 103 per cent the size it was before the pandemic, and so far this year, our economic growth has been the strongest in the G7. In November, our unemployment rate fell to just 5.1 per cent. We have recovered 117 per cent of the jobs lost to COVID, compared to just 105 per cent in the United States. That means 523,000 more Canadians are working today than before COVID first hit.

As we contend with the pandemic's economic aftershocks, this remarkable economic recovery has allowed us to reinforce Canada's social safety net and provide important relief to those who need it most—without pouring fuel on the fire of inflation. And critically, it means that Canada faces the global economic slowdown from a position of fundamental economic strength.

Every year, the federal government provides a report to Parliament and Canadians that details the government's domestic debt program. This report reflects the main activities of the government's borrowing program, as set out in the 2021-22 Debt Management Strategy, and is guided by the key principles of transparency, regularity, prudence, and liquidity. As in the past, the government has consulted dealers and investors as part of the process for developing the debt management strategy.

This report demonstrates that Canada's debt management operations continue to support the effective execution of the debt management program, contributing to the objectives of raising stable and low-cost funding and maintaining a well-functioning market for Government of Canada securities. That market now includes green bonds after the successful issuance of an inaugural $5 billion green bond in March 2022, which received strong demand from investors. This report also shows that there remains strong demand for Government of Canada debt securities, contributing to the stability of Canada's debt.

Our government remains committed to the fiscal anchor that we reiterated in the Fall Economic Statement: the unwinding of COVID-19-related deficits and reducing the federal debt-to-GDP ratio. The federal debt-to-GDP ratio is projected to continuously decline and is on a steeper downward track than projected in Budget 2022. Canada already has the lowest net debt and deficit-to-GDP ratio in the G7, and in early November, Moody's reaffirmed our AAA rating with a stable outlook.

Canada has a proud tradition of fiscal responsibility—a tradition that must and will be maintained.

The Honourable Chrystia Freeland, P.C., M.P.
Deputy Prime Minister and Minister of Finance
Ottawa, 2022

Purpose of This Publication

This edition of the Debt Management Report provides a detailed account of the Government of Canada's borrowing and debt management activities for the fiscal year ending March 31, 2022.

As required under Part IV (Public Debt) of the Financial Administration Act (the "FAA"), this publication provides transparency and accountability regarding these activities. It reports on actual borrowing and uses of funds compared to those forecast in the Debt Management Strategy for 2021-22, published on April 19, 2021, in Budget 2021. It also discusses the environment in which the debt was managed, the composition of the debt, changes in the debt during the year, strategic policy initiatives and performance outcomes.

Other Information

The Public Accounts of Canada is tabled annually in Parliament and is available on the Public Services and Procurement Canada website. The Debt Management Strategy and the Report on the Management of Canada's Official International Reserves, which are also tabled annually in Parliament, are available on the Department of Finance Canada website Additionally, monthly updates on cash balances and foreign exchange assets are available through The Fiscal Monitor, which is also available on the Department of Finance Canada website. Under the Borrowing Authority Act (the "BAA"), the Minister of Finance (the "Minister") is required to table a report to Parliament generally every three years on amounts borrowed by the Minister on behalf of Her Majesty in right of Canada and by agent Crown corporations. The most recent report was tabled in Parliament on November 23, 2020 and is available on the Department of Finance Canada website.

The Extraordinary Borrowing Report to Parliament tabled in Parliament on October 22, 2020, provides a detailed account of amounts borrowed in extraordinary circumstances under section 47 of the FAA (as enacted by the COVID-19 Emergency Response Act).Footnote 1 This report provides details on extraordinary borrowings that were undertaken between April 1, 2020 and September 30, 2020, and is available on the Department of Finance Canada website Furthermore, the 2021-22 Extraordinary Borrowing Report to Parliament was tabled in Parliament on May 25, 2021. This report provides details on extraordinary borrowings that were undertaken between March 23, 2021 to May 6, 2021, and is available on the Department of Finance Canada website.

Executive Summary

Introduction

This publication reports on two major activities: (i) the management of federal market debt (the portion of the debt that is borrowed in financial markets); and (ii) the investment of cash balances in liquid assets for operational purposes and contingency planning.

The government's market debt, including marketable bonds, treasury bills, retail debt and foreign currency debt, stood at $1,232.7 billion at the end of fiscal year 2021-22 (see boxed area of Chart 1). In addition to market and other types of unmatured debt, other liabilities brought the total liabilities of the Government of Canada to $1,838.7 billion at that time. When financial and non-financial assetsFootnote 2 are subtracted from total liabilities, the federal debt or accumulated deficit of the Government of Canada was $1,134.5 billion as at March 31, 2022 (see Chart 1).

In the Debt Management Strategy for 2021-22 published in Budget 2021, the government outlined its plan to issue its first ever green bond to support the environment and climate change plan. The Government of Canada successfully issued its inaugural 7.5-year, $5 billion green bond in March 2022, receiving strong demand from domestic and international investors in green bonds.

Domestic funding is conducted through the issuance of marketable securities, which consist of nominal bonds, Real Return Bonds, green bonds and treasury bills, including cash management bills. These securities are generally sold through competitive auctions (occasionally through a syndication process at the government's discretion, such as for the inaugural green bond) to government securities distributors, a group of banks and investment dealers in the Canadian market. These government securities distributors then resell these securities to their wholesale and retail clients in the secondary market.

Government of Canada marketable securities are widely held and can be found in retail and institutional investment portfolios, insurance companies and pension funds, central banks (including the Bank of Canada), as well as a variety of other investment vehicles. Overall, about 71 per cent of Government of Canada market debt was held by Canadian investors, including the Bank of Canada, as well as insurance companies and pension funds, and financial institutions and provincial and municipal governments. The participation of international investors in Government of Canada securities markets is of benefit to Canadians, as they serve to increase competition, increase the diversity of the government's investor base, and ultimately reduce borrowing costs for Canadian taxpayers.

Cross-currency swaps of domestic obligations and issuance of foreign currency debt are used to fund foreign reserve assets held in the Exchange Fund Account (see the section entitled "Foreign Currency Debt").

Chart 1
Federal Balance Sheet, as at March 31, 2022
Chart 1: Federal Balance Sheet, as at March 31, 2022

Note: Numbers may not add up due to rounding

Source: Public Accounts of Canada

Text version

Unmatured debt ($1,232.7 billion)
Market debt (marketable bonds, treasury bills, retail debt and foreign currency debt) $1,232.7 billion
Market debt value adjustments and nonmarket debt $10.6 billion
Pension and other liabilities $335.1 billion
Accounts payable and accrued liabilities $260.3 billion
Total liabilities $1,838.7 billion
Less financial assets $600.3 billion
Net debt $1,238.4 billion
Less non-financial assets $103.9 billion
Accumulated deficit $1,134.5 billion

Highlights for 2021-22

The Debt Management Report consists of three parts covering the main aspects of the Government of Canada's debt program. "Part I – 2021-22 Debt Management Context" focuses on the state of the accumulated deficit (i.e., federal debt), the year's financial requirements and the sources of borrowings used to raise funds, the federal government's credit ratings, and the authorities required to borrow. "Part II – Report on Objectives, Strategic Direction and Principles" reports on debt management objectives to implement the government's strategic direction to maximize the financing of the COVID-19-related debt through long-term issuance, to raise stable and low-cost funding to meet the financial needs of the Government of Canada, and to maintain a well-functioning market for Government of Canada securities. "Part III – Report on the 2021-22 Debt Program" reports on the operational aspects of the market debt program.

This year's debt management operations continue to support the effective execution of the debt management program. The main highlights are as follows:

COVID-19 and Debt Management

The Debt Management Strategy sets out the objectives, strategy, and borrowing plans for the government's domestic debt program. In 2021-22, the government continued to maximize the financing of COVID-19-related debt through long-term issuance. The shift towards long-term issuance began in 2020-21 as a result of the significant increase in borrowing in response to the COVID-19 crisis. The objective was to provide security and stability to the government balance sheet by lowering debt rollover and providing more predictability in the cost of servicing debt. During 2021-22, the government issued a combined $107.0 billion in 10-year and 30-year bonds compared to $105.5 billion in 2020-21 and $19.0 billion in 2019-20 (pre-pandemic).

In response to the extraordinary circumstances caused by the COVID-19 crisis, on March 23, 2021, the Administrator of the Government of Canada in Council authorized the Minister to borrow money under paragraph 46.1(c) of the FAA. The authority was invoked to fund COVID-19 response programs that received prior approval from Parliament such as the Canada Emergency Wage Subsidy and the Canada Recovery Benefit. During the 2021-22 fiscal year, $1.6 billion was borrowed under paragraph 46.1(c) of the FAA between April 1, 2021 and May 6, 2021. When added to extraordinary borrowings of $6.6 billion from March 23, 2021 to March 31, 2021 of the prior fiscal year (2020-21), outstanding borrowings under that extraordinary borrowing authority increased to $8.2 billion.

Federal Green Bond Program

To support the growth of the sustainable finance market in Canada, in March 2022, the government published a green bond framework and issued its inaugural federal green bond, delivering on commitments made in Budget 2021.

The inaugural issuance of $5 billion, the largest Canadian-dollar green bond offering in Canadian history,  received strong demand from green and socially minded investors, who represented 72 per cent of buyers. There was also strong demand from international investors, reflecting their confidence in the green bond program meeting global standards for sustainable finance.

Stock of Domestic Market Debt

The stock of domestic market debt increased by $122.9 billion in 2021-22, bringing the total debt stock to $1,232.7 billion. The change in the stock was comprised of a $155.6 billion increase in marketable bonds payable in Canadian dollars, a $31.4 billion decrease in treasury and cash management bills, a decrease of $0.3 billion in retail debt, and a $1.0 billion decrease in marketable debt payable in foreign currencies. Notwithstanding the increase in debt stock, Canada's general government net debt-to-GDP (gross domestic product) ratio remains the lowest among the Group of Seven (G7) nations according to the International Monetary Fund (IMF).

In 2021-22 as interest rates rose from a very low level in the previous fiscal year, the weighted average rate of interest on market debt increased to 1.37 per cent compared to 1.35 per cent in 2020-21.

Strong Demand for Government of Canada Debt Securities

In 2021-22, the relative strength of the Canadian economy and its capital markets continued to support demand for Government of Canada securities in primary and secondary markets. Accordingly, treasury bill and bond auctions remained well-covered and competitively bid, providing an efficient manner for the government to raise funding. The publication of the Quarterly Bond Schedule before each quarter and the Call for Tenders before each auction helped maintain transparency. This promoted well-functioning markets for the government's securities to the benefit of a wide array of domestic market participants, contributing to the objective of raising stable and low-cost funding.

Part I
2021-22 Debt Management Context

Composition of Federal Debt

In 2021-22, total market debt increased by $122.9 billion (or about 11 per cent) to $1,232.7 billion (see Table 1). For additional information on the financial position of the government, see the 2021-22 Annual Financial Report of the Government of Canada.

Table 1
Change in the Composition of Federal Debt, as at March 31
$ billions
  2022 2021 Change
Payable in Canadian currency
Marketable bonds 1,030.9 875.3 155.6
Treasury and cash management bills 187.4 218.8 -31.4
Retail debt 0.0 0.3 -0.3
Total payable in Canadian currency 1,218.3 1,094.4 123.9
Payable in foreign currencies 14.5 15.4 -1.0
Total market debt 1,232.7 1,109.8 122.9
Market debt value adjustment, capital lease obligations and other unmatured debt 10.6 15.4 -4.8
Total unmatured debt 1,243.3 1,125.2 118.1
Pension and other accounts 335.1 319.7 15.4
Total interest-bearing debt 1,578.4 1,444.8 133.5
Accounts payable, accruals and allowances 260.3 207.4 52.9
Total liabilities 1,838.7 1,652.2 186.4
Total financial assets 600.3 502.4 97.9
Total non-financial assets 103.9 101.1 2.8
Federal debt (accumulated deficit) 1,134.5 1,048.7 85.7

Note: Numbers may not add due to rounding.
Source: Public Accounts of Canada.

Sources of Borrowings and Uses of Borrowings

The key reference point for debt management is the financial requirement or financial source, which represents the net cash outflow or inflow for the fiscal year. This measure differs from the budgetary balance (i.e., the deficit or surplus on an accrual basis) by the amount of non-budgetary transactions and the timing of payments on a cash basis, which can be significant. Non-budgetary transactions include changes in federal employee pension liabilities; changes in non-financial assets; investing activities through loans, investments and advances; and changes in other financial assets and liabilities, including foreign exchange activities. Anticipated borrowing and planned uses of borrowings are set out in the debt management strategy, while actual borrowing and uses of borrowings compared to those forecast are reported in this publication (see Table 2).

There was a financial requirement of $81.4 billion in 2021-22, reflecting $90.2 billion in cash outflows due to a budgetary deficit and a cash inflow of $8.8 billion due to non-budgetary transactions. The financial requirement was $109.6 billion lower than the projection in the Debt Management Strategy for 2021-22. Lower financial requirements were primarily a result of higher than expected budgetary revenue. For comparison, the financial requirement in 2020-21 was $314.6 billion.

In 2021-22, loans to the Business Development Bank of Canada, Canada Mortgage and Housing Corporation and Farm Credit Canada under the Crown Borrowing Program increased by $7.0 billion, where no increase was planned as reported in the Debt Management Strategy for 2021-22.

Table 2
Sources of Borrowings and Uses of Borrowings, Fiscal Year 2021-22: Planned/Actual
$ billions
  Planned1 Actual Difference
Sources of borrowings
Payable in Canadian currency
Treasury bills
226 187 -39
Bonds
286 257 -29
Retail debt
0 0 0
Total payable in Canadian currency 512 445 -67
Payable in foreign currencies 10 7 -3
Total cash raised through borrowing activities 523 452 -71
Uses of borrowings2
Refinancing needs
Payable in Canadian currency
     
Treasury bills
219 219 0
Bonds
105 105 0
Of which:
     
Bonds that mature
105 105 0
Switch bond buybacks
0 0 0
Cash management bond buybacks
0 0 0
Retail debt
0 0 0
Total payable in Canadian currency
324 324 0
Payable in foreign currencies
8 8 0
Total refinancing needs 332 332 0
Financial source/requirement
Budgetary balance
155 90 -65
Non-budgetary transactions
     
Pension and other accounts
-11 -13 -2
Non-financial assets
3 3 0
Loans, investments and advances
11 23 12
Of which:
     
Loans to enterprise Crown corporations3
0 7 7
Other
11 16 5
Other transactions4
33 -22 -55
Total non-budgetary transactions
36 -9 -45
Total financial source/requirement 191 81 -110
Total uses of borrowings 523 414 -109
Change in other unmatured debt transactions5 0 5 5
Net increase or decrease (-) in cash 0 37 37
Note: Numbers may not add due to rounding.
1 Planned numbers are from the Debt Management Strategy for 2021–22.
2 A negative sign denotes a financial source.
3 Loans to enterprise Crown corporations represent corporations under the Crown Borrowing Program.
4 Primarily includes the conversion of accrual adjustments into cash, such as tax and other account receivables; provincial and territorial tax collection agreements; and tax payables and other liabilities.
5 Includes cross-currency swap revaluation, unamortized discounts on debt issues, obligations related to capital leases and other unmatured debt, where this refers to in the table.

Borrowing Authorities

In order to undertake market borrowing activities, the Minister needs authority from Parliament as well as the Governor in Council (the "GIC").

Under the Parliamentary borrowing authority framework enacted on November 23, 2017, Parliamentary authority is granted through the BAA and Part IV of the FAA, which together allow the Minister to borrow money up to a maximum overall amount as approved by Parliament. The FAA also authorizes the Minister to borrow in excess of the approved maximum amount under limited circumstances for the specific purposes of refinancing outstanding debt, extinguishing or reducing liabilities, and making payments in extraordinary circumstances, such as natural disasters.

Subject to the noted limited exceptions, the maximum stock of borrowings approved by Parliament in effect from April 1, 2020 to May 5, 2021 was $1,168 billion, which also includes amounts borrowed by agent Crown corporations, and Canada Mortgage Bonds guaranteed by Canada Mortgage and Housing Corporation. On May 6, 2021, the maximum amount of borrowing was amended to $1,831 billion when the Economic Statement Implementation Act, 2020 received Royal Assent. As at March 31, 2022, the outstanding borrowings subject to the maximum amount was $1,529 billion ($1,133 billion as at March 31, 2021).

Part IV of the FAA also requires the Minister to receive annual approval from the GIC to carry out borrowing for the Government of Canada for each fiscal year, including issuing securities in financial markets and undertaking related activities subject to a maximum aggregate amount. On the recommendation of the Minister, the GIC approved $635 billion to be the maximum aggregate principal amount of money that may be borrowed by the Minister in 2021-22.Footnote 3 The maximum aggregate principal amount is the sum of the following sub-components: (i) the maximum stock of treasury bills anticipated to be outstanding during the year; (ii) the total value of refinanced and anticipated new issuances of marketable bonds; and (iii) amounts to facilitate intra-year management of the debt and foreign exchange accounts.

During 2021-22, $452 billion of the GIC-approved borrowing authority was used, $183 billion below the authorized borrowing authority limit (see Table 2).

Government of Canada Credit Rating Profile

Throughout 2021-22, the Government of Canada continued to receive high credit ratings from rating agencies, with a stable outlook, on Canadian-dollar and foreign-currency-denominated short- and long-term debt (see Table 3).

The rating agencies focusing on general government net debt-to-GDP have indicated that Canada's sound macroeconomic policy framework and financial system, as well as Canada's economic resilience and diversity and the strength of monetary and fiscal flexibility, are all reflected in Canada's strong current credit ratings: Moody's (Aaa), Fitch (AA+), S&P (AAA), DBRS (AAA) and JCRA (AAA).

Table 3
Government of Canada Credit Ratings as at March 31, 2022

Rating agency
Term Domestic
currency
Foreign
currency
Outlook Previous rating
action
Moody's Investors Service Long-term
Short-term
Aaa
-
Aaa
-
Stable Nov 2003
Standard & Poor's Long-term
Short-term
AAA
A-1+
AAA
A-1+
Stable July 2002
Fitch Ratings Long-term
Short-term
AA+
F1+
AA+
F1+
Stable June 2020
Dominion Bond Rating Service Long-term
Short-term
AAA
R-1 (High)
AAA
R-1 (High)
Stable n/a
Japan Credit Rating Agency Long-term AAA AAA Stable n/a

Part II
Report on Objectives, Strategic Direction and Principles

Objectives, Strategic Direction and Principles

Objectives

The debt management objectives in 2021-22 were to raise stable and low-cost funding to meet the financial needs of the Government of Canada and to maintain a well-functioning market for Government of Canada securities.

Strategic Direction

In its Debt Management Strategy for 2021-22, the government continued to maximize its financing of COVID-19-related debt through long-term issuance. This prudent approach aimed to provide security by lowering debt rollover and providing more predictability in the cost of servicing debt. Maintaining the shift towards long-term debt issuance, which began in 2020-21, also involved the re-opening of the ultra-long 50-year bond.

Principles

In support of the objectives and strategic direction, the design and implementation of the domestic debt program are guided by the key principles of transparency, regularity, prudence and liquidity. Towards this end, the government publishes strategies and plans, and consults regularly with market participants to ensure the integrity and attractiveness of the market for dealers and investors. The structure of the market debt is managed conservatively in a cost-risk framework, preserving access to diversified sources of funding and supporting a broad investor base.

Raising Stable and Low-Cost Funding, and Strategic Direction

In general, achieving stable and low-cost funding involves striking a balance between debt costs and various risks in the debt structure. This selected balance between cost and risk is mostly achieved through the deliberate allocation of issuance among various debt instruments and terms.

Market Debt Issuance in 2021-22

In 2021-22, total bond issuance was $257.4 billion, down from $369.9 billion in 2020-21 reflecting lower financial requirements. The total bond issuance included an inaugural 7.5-year, $5.0 billion green bond.

Shorter-term debt instruments experienced a decrease in issuance from all-time highs, with 2-, 3- and 5-year maturities seeing the largest decrease on a percentage basis. In particular, 2-year issuance decreased to
$67.0 billion from $129.0 billion, 3-year issuance decreased to $29.0 billion from $56.5 billion, and the 5-year issuance decreased to $44.0 billion from $77.5 billion in 2021-22 compared to 2020-21 (see Table 4.1). Overall, $140.0 billion in short-term bonds were issued, down from $263.0 billion in 2020-21 (see Table 4.2).

The allocation of long bond issuance (i.e., 10-year maturities and longer) was 44 per cent in 2021-22, 15 percentage points higher than the previous fiscal year, when it was 29 per cent (see Table 4.2) and 2 percentage points higher than the plan set out in the Debt Management Strategy for 2021-22 (see Table 4.3).While issuanceacross all tenors was lower than expected as the financial requirement came in $109.6 billion lower than projected, a higher allocation of long issuance was maintained in support of the strategic direction adopted by the government.

Table 4.1
Gross Issuance of Bonds and Bills for 2021-22
$ billions, end of fiscal year
  2020-21 Previous Year 2021-22 Planned 2021-22 Actual Difference between Actual and Planned 2021-22 Actual vs 2020-21 % change
Treasury bills 219 226 187 -39 -14%
2-year 129 76 67 -9 -48%
3-year 57 36 29 -7 -49%
5-year 78 48 44 -4 -43%
10-year 74 84 79 -5 7%
30-year 32 32 28 -4 -13%
Real Return Bonds 1 1 1 0 0%
Ultra-long 0 4 4 0  
Green bonds 0 5 5 0  
Total bonds 370 286 257 -29 -31%
Total gross issuance1 589 512 445 -68 -24%

1 Issuance is estimated from Bank of Canada data, using issuance date to determine the amount issued in each sector and fiscal year, consistent with Bank of Canada methodology. The use of issuance date instead of auction date results in slight differences in some sectors.

Table 4.2
Allocation of Gross Bond Issuance, 2020-21 vs. 2021-22
  2020-21 Previous Year 2021-22 Actual
  Issuance
($ billions)
Share of Bond Issuance Issuance
($ billions)
Share of Bond Issuance
Short (2, 3, 5-year sectors) 263 71% 140 54%
Long (10-year+) 107 29% 112 44%
Green bonds -   5 2%
Gross bond issuance 370 100% 257 100%
Table 4.3
Allocation of Gross Bond Issuance, 2021-22 Planned vs. Actual
  2021-22 Planned 2021-22 Actual
  Issuance ($ billions) Share of Bond Issuance Issuance ($ billions) Share of Bond Issuance
Short (2, 3, 5-year sectors) 160 56% 140 54%
Long (10-year+) 121 42% 112 44%
Green bonds 5 2% 5 2%
Gross bond issuance 286 100% 257 100%

Market Debt Composition

The composition of the stock of market debt is a reflection of past debt issuance choices (e.g., over the last 30 years for the 30-year sector). The effects of changes in issuance patterns of short-term debt instruments become visible relatively quickly, while the full effect of issuance changes in longer-term debt instruments takes the entire maturity period to be fully appreciated. A well-distributed maturity profile helps maintain a prudent risk exposure to changes in interest rates over time at an affordable cost, while promoting well-functioning markets by providing liquidity across different maturity sectors.

Composition of Market Debt by Remaining Term to Maturity

As a result of the significant increase in long-term bond issuance during 2020-21 and 2021-22, the composition of market debt made up by long-term debt stock grew in 2021-22. Correspondingly, the proportion of short-term bonds declined. The cumulative effect of the increased short-term issuance in 2020-21 and increased long-term issuance in 2020-21 and 2021-22 on the composition of the debt will become further pronounced in the coming years as the shorter-term bonds issued in 2020-21 mature (see Chart 2).

Chart 2
Composition of Market Debt by Remaining Term to Maturity, as at March 31
Chart 2: Composition of Market Debt by Remaining Term to Maturity, as at March 31

Note: Numbers may not add up due to rounding. Data includes Consumer Price Index adjustment.

Source: Public Accounts of Canada and Bank of Canada.

Text version
Row Labels Treasury bills Less than 1 year 1-2 years 2-3 years 3-5 years 5-10 years More than 10 years
Five Year Historical Reference
(2016-17)
136.7 68.13148 91.36 69.25 90.32 79.91 136.90
2020-2021 5.2 104.86642 181.706022 92.966232 167.799239 160.69152 111.347094
2021-2022 3.2 181.706022 152.966232 105.065381 164.889043 227.179248 169.6218375

Cost of Market Debt

Annual interest rate costs on market debt are the largest component of public debt charges (which also include interest expenses on non-market liabilities).Footnote 4 The weighted average rate of interest on the stock of market debt was 1.37 per cent in 2021-22, slightly up from 1.35 per cent in 2020-21. Interest on market debt as a share of total government expenses increased from 2.33 per cent in 2020-21 to 3.35 per cent in 2021-22 (see Chart 3). This was primarily due to the larger stock of market debt following a significant increase in debt in 2020-21.

Chart 3
Market Debt Costs and Average Effective Interest Rate
Chart 3: Market Debt Costs and Average Effective Interest Rate

Source: Public Accounts of Canada.

Text version
  Market Debt Cost (left scale) Market Debt Cost as % of Total Expenses (left scale) Average Interest Rate (right scale) Total Expenses
2012-13 16.36 5.93 2.45 275.703
2013-14 15.37 5.53 2.37 278.062
2014-15 14.74 5.26 2.27 280.455
2015-16 13.60 4.60 2.03 295.469
2016-17 13.13 4.24 1.89 309.825
2017-18 14.16 4.29 2.01 330.177
2018-19 15.72 4.54 2.18 346.182
2019-20 15.53 4.16 2.03 373.523
2020-21 14.98 2.33 1.35 644.175
2021-22 16.89 3.35 1.37 503.489

Market Debt: Average Term to Maturity and Debt Rollover

Prudent management of debt refinancing needs, which promotes investor confidence, involves Government of Canada actions that strive to minimize the impact of market volatility or disruptions to the funding program. According to a number of common measures of market debt refinancing risks, including average term to maturity (ATM) and debt rollover, the Government of Canada's market debt remained prudent through 2021-22 when compared to historical averages.

Average Term to Maturity

The ATM of market debt tends to rise and fall mostly with the stock of treasury bills. This is evident in the decline of the ATM from 6.7 years in 2018-19 to 6.3 years in 2019-20, which resulted from increased issuance of treasury bills to support a liquid and well-functioning market for Government of Canada treasury bills.

In 2021-22, the ATM increased to 6.6 years, up from 6.0 years in 2020-21, reflecting the decline in the stock of treasury bills during the year and the continuation of the Government of Canada's strategic direction to maximize long-term issuance (see Chart 4.1).

Chart 4.1
Average Term to Maturity of Government of Canada Market Debt
Chart 4.1: Average Term to Maturity of Government of Canada Market Debt

Source: Bank of Canada

Text version
  Average Term-to-Maturity Net of Assets Gross ATM
2011-12 7.368735 6.0
2012-13 7.373985 5.9
2013-14 7.433324 6.3
2014-15 8.094916 6.8
2015-16 8.000462463 6.6
2016-17 7.997911443 6.6
2017-18 8.352715969 6.7
2018-19 8.397863876 6.7
2019-20 7.542353671 6.3
2020-21 7.407715281 6.0
2021-22 8.431352649 6.6

The weighted ATM is measured by weighting the remaining term to maturity of issued debt by its proportion to the overall debt stock.Footnote 5

Canada has successfully built a prudent debt structure relative to GDP over the last 30 years. In general, low debt-to-GDP countries can choose a higher risk level (i.e., lower ATM) in exchange for lower interest rate costs. Overall, Canada is in line with other AAA-rated countries (see Chart 4.2).

Chart 4.2
Weighted ATM vs Market Debt-to-GDP
Chart 4.2: Weighted ATM vs Market Debt-to-GDP

Source: Bloomberg as of March 31, 2022

Text version
Country Market Debt to GDP Weighted ATM
Australia 41% 6.30
Canada 49% 5.99
Germany 48% 6.45
United States 93% 5.82
United Kingdom 86% 11.00
France 92% 7.94
Japan 218% 8.50
Italy 137% 6.54
Debt Rollover: Quarterly Maturities to GDP

Debt rollover, measured as the amount of debt maturing per quarter as a percentage of GDP, decreased to an average of 5.8 per cent in 2021-22 from an average of 7.6 per cent in 2020-21. This decrease reflects the large amount of treasury bills that matured in 2020-21 to fund government actions at the height of the COVID-19 pandemic, as well as the government's approach of maximizing the financing of COVID-19-related debt through long-term issuance (see Chart 5). The average annual debt rollover in 2021-22 is in line with the average over the previous decade of 5.6 per cent.

Chart 5
Quarterly Maturities of Domestic Market Debt as a Percentage of GDP
Chart 5: Quarterly Maturities of Domestic Market Debt as a Percentage of GDP

Source: Bank of Canada

Text version
Fiscal Year Calendar Year Quarterly Rollover as a % of GDP
2012-13 Q1 Q2 6.4232
Q2 Q3 6.8969
Q3 Q4 6.1386
Q4 Q1 6.4181
2013-14 Q1 Q2 6.3542
Q2 Q3 7.4798
Q3 Q4 6.0168
Q4 Q1 6.3018
2014-15 Q1 Q2 5.8622
Q2 Q3 5.8782
Q3 Q4 5.7312
Q4 Q1 4.9394
2015-16 Q1 Q2 6.1978
Q2 Q3 4.8461
Q3 Q4 5.8244
Q4 Q1 4.6406
2016-17 Q1 Q2 5.5905
Q2 Q3 5.7876
Q3 Q4 5.3863
Q4 Q1 4.8199
2017-18 Q1 Q2 5.0901
Q2 Q3 4.5192
Q3 Q4 4.3722
Q4 Q1 3.7047
2018-19 Q1 Q2 4.1377
Q2 Q3 3.7220
Q3 Q4 4.5502
Q4 Q1 4.6873
2019-20 Q1 Q2 4.6212
Q2 Q3 4.1433
Q3 Q4 4.3361
Q4 Q1 3.9205
2020-21 Q1 Q2 6.8131
Q2 Q3 10.5205
Q3 Q4 7.4647
Q4 Q1 5.7206
2021-22 Q1 Q2 6.7064
Q2 Q3 6.3725
Q3 Q4 4.9991
Q4 Q1 5.0831
Debt Rollover: Single-Day Maturities

The government maintained 10 maturity dates in 2021-22, which was the same as in 2020-21. Following the significant increase in debt which began in 2020-21, single-day maturities remain high relative to historical averages. The government monitors the level of single-day maturities and may implement programs to effectively manage Government of Canada cash flows ahead of large debt maturities.

The benchmark maturity date profile is as follows:

Maintaining a Well-Functioning Government Securities Market

A well-functioning market in Government of Canada securities benefits the government as a borrower as it directly supports the fundamental objective of raising stable, low-cost funding, while also benefiting a wide range of market participants.

A well-functioning market helps the government to have more certain access to funding markets over time, contributes to lower and less volatile interest rate costs for the government, and provides flexibility to meet changing financial requirements. For market participants, a liquid and transparent secondary market in government debt instruments provides risk-free assets for investment portfolios, stability to other domestic fixed-income markets for which Government of Canada securities serve as benchmarks (e.g., provinces, municipalities and corporations), and a useful tool for hedging interest rate risk.

Providing Regular and Transparent Issuance

During 2021-22, the Government of Canada continued announcing bond auction schedules prior to the start of each quarter, and provided details for each operation in a Call for Tender in the week leading up to an auction.Footnote 6 In 2021-22, there were regular auctions for 2-, 3-, 5-, 10- and 30-year bonds, as well as Real Return Bonds. Bond issuance schedules were communicated through the Bank of Canada website on a timely basis.

To bring additional transparency to the market for Government of Canada securities, effective September 2021, the Bank of Canada began publishing benchmark details ahead of each fiscal quarter within its Quarterly Bond Schedule publications.

Concentrating on Key Benchmarks

The bond benchmark ranges for 2021-22 were narrower compared to the previous fiscal year given less uncertainty following the peak of the COVID-19 pandemic (see Chart 6).Footnote 7 Compared to 2020-21, the upper limit was considerably lower for all maturities, while the lower bound was higher for all maturities except the 3-year and 5-year bonds. Although the ranges narrowed, benchmark sizes remained higher in 2021-22 compared to 2019-20 (pre-pandemic) for all maturities.

Chart 6
Size of Gross Bond Benchmarks in 2021-22
Chart 6: Size of Gross Bond Benchmarks in 2021-22

Note: Issuance into the 3-year Apr-24 benchmark began in the 2020-21 fiscal year and finished in the 2021-22 fiscal year.

Source: Bank of Canada

Text version
Term   Issues Outstanding Fungible Outstanding Lower Range Upper Range
2-year bonds May-23 30.0 0.0 16 20
Aug-23 20.0 0.0 16 20
Nov-23 16.5 0.0 16 20
Feb-24 17.5 0.0 16 20
3-year bonds Oct-24 14.0 0.0 10 14
Apr-25 6.0 0.0 10 14
5-year bonds Sep-26 23.0 0.0 16 20
Mar-27 17.0 0.0 16 20
10-year bonds Jun-31 42.0 0.0 18 32
Dec-31 32.0 0.0 18 32
30-year bonds   0.0 0.0 25 40
Dec-53 21.0 0.0 25 40
  0.0 0.0 25 40

Ensuring a Broad Investor Base in Government of Canada Securities

A diversified investor base supports an active secondary market for Government of Canada securities, thereby helping to keep funding costs low and stable. Diversification of the investor base is pursued by maintaining a domestic debt program that issues securities in a wide range of maturity sectors, which meet the needs of different types of investors types.

During 2021-22, domestic investors (including the Bank of Canada) held about 71 per cent of Government of Canada securities (see Chart 7). Among domestic investors, the Bank of Canada held the largest share of Government of Canada securities (32 per cent), followed by insurance companies and pension funds (15 per cent). Taken together, these top two categories accounted for just under half of outstanding Government of Canada securities.

In 2021-22, non-resident investors held 29 per cent of Government of Canada securities,Footnote 8 up five percentage points from 2020-21. This share of non-resident holdings of government securities remains below the average G7 holdings by non-resident investors (see Chart 8).

Chart 7
Distribution of Government of Canada Securities
Chart 7: Distribution of Government of Canada Securities

Source: Statistics Canada

Text version
Monthly Monthly Domestic holdings (left scale) Bank of Canada holdings (left scale) Non-Resident holdings (left scale) Non-Resident holdings (% of nominal outstanding) Non-Resident holdings (percentage of nominal outstanding - right scale) Domestic holdings (percentage of nominal outstanding - right scale)
2013-2014 Q1 Apr-13 2013-2014 394.45 81.76 186.16 28.11% 28.11 71.89
May-13 2013-2014 409.15 85.91 182.92 26.98% 26.98 73.02
Jun-13 2013-2014 392.83 86.26 189.03 28.29% 28.29 71.71
Q2 Jul-13 2013-2014 407.69 87.63 182.47 26.92% 26.92 73.08
Aug-13 2013-2014 406.35 86.42 183.65 27.15% 27.15 72.85
Sep-13 2013-2014 400.17 85.95 186.94 27.78% 27.78 72.22
Q3 Oct-13 2013-2014 394.29 87.96 182.14 27.41% 27.41 72.59
Nov-13 2013-2014 384.65 88.23 184.33 28.05% 28.05 71.95
Dec-13 2013-2014 380.76 89.22 182.91 28.02% 28.02 71.98
Q4 Jan-14 2013-2014 383.64 88.15 178.77 27.48% 27.48 72.52
Feb-14 2013-2014 376.51 87.70 179.90 27.93% 27.93 72.07
Mar-14 2013-2014 360.25 86.34 186.48 29.46% 29.46 70.54
2014-2015 Q1 Apr/2014 2014-2015 363.26 89.01 192.33 29.84% 29.84 70.16
May/2014 2014-2015 385.92 91.01 174.24 26.76% 26.76 73.24
Jun/2014 2014-2015 384.82 89.99 165.87 25.89% 25.89 74.11
Q2 Jul/2014 2014-2015 391.12 92.08 163.84 25.32% 25.32 74.68
Aug/2014 2014-2015 386.22 90.03 165.28 25.76% 25.76 74.24
Sep/2014 2014-2015 382.48 91.29 165.11 25.84% 25.84 74.16
Q3 Oct/2014 2014-2015 376.39 91.68 171.30 26.79% 26.79 73.21
Nov/2014 2014-2015 378.92 90.80 170.11 26.59% 26.59 73.41
Dec/2014 2014-2015 377.33 91.50 164.36 25.96% 25.96 74.04
Q4 Jan/2015 2014-2015 388.98 92.81 162.23 25.19% 25.19 74.81
Feb/2015 2014-2015 372.60 91.16 170.73 26.91% 26.91 73.09
Mar/2015 2014-2015 369.26 90.43 174.34 27.50% 27.50 72.50
2015-2016 Q1 Apr/2015 2015-2016 356.09 92.96 193.32 30.09% 30.09 69.91
May/2015 2015-2016 361.64 93.46 192.32 29.71% 29.71 70.29
Jun/2015 2015-2016 350.58 93.80 194.16 30.41% 30.41 69.59
Q2 Jul/2015 2015-2016 361.52 98.41 195.02 29.78% 29.78 70.22
Aug/2015 2015-2016 357.14 96.01 198.90 30.50% 30.50 69.50
Sep/2015 2015-2016 362.35 95.32 196.84 30.07% 30.07 69.93
Q3 Oct/2015 2015-2016 355.55 97.70 204.97 31.14% 31.14 68.86
Nov/2015 2015-2016 360.69 95.61 206.53 31.16% 31.16 68.84
Dec/2015 2015-2016 362.13 94.08 199.82 30.46% 30.46 69.54
Q4 Jan/2016 2015-2016 370.97 93.20 201.82 30.30% 30.30 69.70
Feb/2016 2015-2016 361.50 90.61 206.41 31.34% 31.34 68.66
Mar/2016 2015-2016 365.23 89.91 199.14 30.44% 30.44 69.56
2016-2017 Q1 Apr/2016 2016-2017 365.56 91.92 209.96 31.46% 31.46 68.54
May/2016 2016-2017 362.03 93.61 220.26 32.59% 32.59 67.41
Jun/2016 2016-2017 361.97 95.13 212.30 31.72% 31.72 68.28
Q2 Jul/2016 2016-2017 365.96 97.79 215.98 31.77% 31.77 68.23
Aug/2016 2016-2017 362.64 94.99 219.55 32.42% 32.42 67.58
Sep/2016 2016-2017 361.30 95.71 219.63 32.46% 32.46 67.54
Q3 Oct/2016 2016-2017 362.71 95.74 221.06 32.53% 32.53 67.47
Nov/2016 2016-2017 362.98 94.20 222.94 32.78% 32.78 67.22
Dec/2016 2016-2017 363.14 94.02 221.69 32.66% 32.66 67.34
Q4 Jan/2017 2016-2017 371.48 97.58 213.72 31.30% 31.30 68.70
Feb/2017 2016-2017 374.65 96.26 210.67 30.91% 30.91 69.09
Mar/2017 2016-2017 373.27 94.71 210.53 31.03% 31.03 68.97
2017-2018 Q1 Apr/2017 2017-2018 372.04 96.73 221.44 32.08% 32.08 67.92
May/2017 2017-2018 370.19 97.48 231.66 33.13% 33.13 66.87
Jun/2017 2017-2018 380.22 100.85 220.59 31.44% 31.44 68.56
Q2 Jul/2017 2017-2018 371.59 103.14 224.13 32.07% 32.07 67.93
Aug/2017 2017-2018 368.74 100.92 226.53 32.54% 32.54 67.46
Sep/2017 2017-2018 363.18 99.56 232.41 33.43% 33.43 66.57
Q3 Oct/2017 2017-2018 359.16 102.17 237.90 34.02% 34.02 65.98
Nov/2017 2017-2018 351.94 99.21 247.20 35.40% 35.40 64.60
Dec/2017 2017-2018 353.60 99.71 244.81 35.07% 35.07 64.93
Q4 Jan/2018 2017-2018 356.43 100.58 241.59 34.58% 34.58 65.42
Feb/2018 2017-2018 370.46 100.06 230.99 32.93% 32.93 67.07
Mar/2018 2017-2018 373.58 98.58 217.75 31.56% 31.56 68.44
2018-2019 Q1 Apr/2018 2018-2019 387.00 100.72 211.37 30.23% 30.23 69.77
May/2018 2018-2019 388.16 102.32 212.61 30.24% 30.24 69.76
Jun/2018 2018-2019 379.87 102.78 212.31 30.55% 30.55 69.45
Q2 Jul/2018 2018-2019 382.03 104.55 216.14 30.76% 30.76 69.24
Aug/2018 2018-2019 385.50 105.16 213.24 30.29% 30.29 69.71
Sep/2018 2018-2019 381.92 104.18 212.56 30.42% 30.42 69.58
Q3 Oct/2018 2018-2019 390.20 105.46 215.02 30.26% 30.26 69.74
Nov/2018 2018-2019 382.23 103.39 220.18 31.20% 31.20 68.80
Dec/2018 2018-2019 388.95 103.22 213.16 30.22% 30.22 69.78
Q4 Jan/2019 2018-2019 387.08 103.91 223.23 31.25% 31.25 68.75
Feb/2019 2018-2019 381.91 102.43 222.06 31.44% 31.44 68.56
Mar/2019 2018-2019 388.55 101.73 215.63 30.55% 30.55 69.45
2019-2020 Q1 Apr/2019 2019-2020 397.65 103.30 215.96 30.12% 30.12 69.88
May/2019 2019-2020 394.35 103.77 223.44 30.97% 30.97 69.03
Jun/2019 2019-2020 395.37 103.98 213.63 29.96% 29.96 70.04
Q2 Jul/2019 2019-2020 416.37 105.83 202.83 27.98% 27.98 72.02
Aug/2019 2019-2020 418.43 106.49 203.49 27.94% 27.94 72.06
Sep/2019 2019-2020 415.01 102.53 200.44 27.92% 27.92 72.08
Q3 Oct/2019 2019-2020 426.38 103.35 202.09 27.61% 27.61 72.39
Nov/2019 2019-2020 415.83 101.39 206.91 28.57% 28.57 71.43
Dec/2019 2019-2020 415.35 101.66 202.78 28.17% 28.17 71.83
Q4 Jan/2020 2019-2020 416.59 103.15 204.90 28.28% 28.28 71.72
Feb/2020 2019-2020 409.70 104.68 218.83 29.84% 29.84 70.16
Mar/2020 2019-2020 429.79 102.49 216.91 28.95% 28.95 71.05
2020-2021 Q1 Apr/2020 2020-2021 466.97 168.40 249.93 28.23% 28.23 71.77
May/2020 2020-2021 492.50 235.49 262.41 26.50% 26.50 73.50
Jun/2020 2020-2021 501.92 285.41 261.38 24.92% 24.92 75.08
Q2 Jul/2020 2020-2021 490.22 316.79 265.31 24.74% 24.74 75.26
Aug/2020 2020-2021 471.76 312.77 272.30 25.77% 25.77 74.23
Sep/2020 2020-2021 456.23 315.24 271.26 26.01% 26.01 73.99
Q3 Oct/2020 2020-2021 476.00 320.03 275.18 25.69% 25.69 74.31
Nov/2020 2020-2021 460.46 326.52 285.19 26.60% 26.60 73.40
Dec/2020 2020-2021 459.78 337.26 282.19 26.15% 26.15 73.85
Q4 Jan/2021 2020-2021 464.51 348.38 272.00 25.07% 25.07 74.93
Feb/2021 2020-2021 474.06 358.71 260.59 23.83% 23.83 76.17
Mar/2021 2020-2021 471.54 363.37 258.43 23.64% 23.64 76.36
2021-2022 Q1 Apr/2021 2021-2022 455.55 366.63 282.82 25.59% 25.59 74.41
May/2021 2021-2022 463.45 364.28 301.32 26.69% 26.69 73.31
Jun/2021 2021-2022 465.40 368.04 314.32 27.39% 27.39 72.61
Q2 Jul/2021 2021-2022 479.96 377.81 322.87 27.35% 27.35 72.65
Aug/2021 2021-2022 479.01 379.50 334.67 28.05% 28.05 71.95
Sep/2021 2021-2022 456.34 387.12 324.04 27.76% 27.76 72.24
Q3 Oct/2021 2021-2022 461.65 395.70 329.46 27.76% 27.76 72.24
Nov/2021 2021-2022 451.64 390.25 345.54 29.10% 29.10 70.90
Dec/2021 2021-2022 450.05 390.80 358.33 29.88% 29.88 70.12
Q4 Jan/2022 2021-2022 457.66 391.59 356.33 29.56% 29.56 70.44
Feb/2022 2021-2022 468.87 392.61 348.39 28.80% 28.80 71.20
Mar/2022 2021-2022 473.58 385.28 358.07 29.42% 29.42 70.58
Chart 8
Percentage of Total Marketable Debt of G7 Countries Held by Non-Residents
Chart 8: Percentage of Total Marketable Debt of G7 Countries Held by Non-Residents

Source: Statistics Canada, L'Agence France Trésor, Bundesbank, Bancaimi (Italy Central Bank), Ministry of Finance Japan, United Kingdom Debt Management Office, United States Department of Treasury.

Text version
Country 2019-20 2020-21 2021-22 G7 Average
Canada 29.0 23.6 28.6 31.66
France 53.6 49.8 48.5 31.66
Germany 47.9 45.2 41.8 31.66
Italy 30.5 30.4 28.5 31.66
Japan 12.8 13.2 13.6 31.66
United Kingdom 30.1 27.6 28.0 31.66
United States 40.5 32.9 32.7 31.66

Consulting With Market Participants

Formal consultations with market participants are held at least once a year, in order to obtain their views on the design of the borrowing program and on the liquidity and efficiency of the Government of Canada's securities markets. These consultations helped to inform the Debt Strategy Management Strategy for 2021-22.

During the consultations held in September and October of 2020, the Department of Finance and the Bank of Canada conducted over 30 bilateral virtual meetings with dealers, investors and other relevant market participants. These consultations sought the views of market participants on issues related to the design and operation of the Government of Canada's domestic debt program.

During the fall 2020 consultations, a broad concensus supported continued issuance in the 10- and 30-year sectors, a direction that continued into 2021-22. Market participants also expressed strong support for the issuance of a green bond, the first of which was issued in 2021-22. The Fall 2020 Debt Management Strategy Consultations Summary was published in conjunction with the Fall Economic Statement 2020 on November 30, 2020.Footnote 9

Securities Distribution System

As the government's fiscal agent, the Bank of Canada distributes Government of Canada marketable bills and bonds by auction to government securities distributors (GSDs) and customers. GSDs that maintain a certain threshold of activity in the primary and secondary markets for Government of Canada securities may become primary dealers, which form a select core group of distributors for Government of Canada securities. To maintain a well-functioning securities distribution system, government securities auctions are monitored to ensure that GSDs abide by the terms and conditions.Footnote 10

Quick turnaround times enhance the efficiency of auctions, and reduce market risk for participants. In 2021-22, the turnaround time for treasury bill and bond auctions averaged 1 minute 58 seconds, while there were no buyback operations conducted. This compares to an average turnaround time in 2020-21 of 1 minute 57 seconds.Footnote 11

Monitoring Secondary Market Trading in Government of Canada Securities

Two important measures of liquidity and efficiency in the secondary market for Government of Canada securities are trading volume and turnover ratio.

Trading volume represents the amount of securities traded during a specific period (e.g., daily). Large trading volumes typically indicate that participants can buy or sell in the marketplace without a substantial impact on the price of the securities and generally imply lower bid-offer spreads.

Turnover ratio, which is the ratio of securities traded relative to the amount of securities outstanding, measures market depth. High turnover implies that a large amount of securities change hands over a given period of time, which is an indication of a liquid market.

The average daily trading volume in the secondary market for Government of Canada's bonds during 2021-22 was $39.4 billion, down $2.7 billion from 2020-21 (see Chart 9). This brought trading volume closer to its
pre-pandemic level.

Chart 9
Government of Canada Bond Average Daily Trading Volumes
Chart 9: Government of Canada Bond Average Daily Trading Volumes

Source: Bank of Canada

Text version
Fiscal Year 0-3 years 3-10 years 10+ years (including Real Return Bonds) Total
2011-12 12.6 12.6 2.4 27.6
2012-13 13.3 14.3 2.5 30.1
2013-14 12.3 17.8 3.6 33.7
2014-15 10.7 16 3.6 30.3
2015-16 10 14.1 3 27.1
2016-17 13 16.2 2.8 32
2017-18 14.9 20.4 3.1 38.4
2018-19 14.8 18.8 3.1 36.7
2019-20 15.6 20.4 3.5 39.5
2020-21 15.4 22.8 3.9 42.1
2021-22 15.4 20.8 3.1 39.4

In 2021-22, the annual debt stock turnover ratio in the Government of Canada secondary bond market, calculated as trading volume divided by average debt stock, decreased to 10.9x from 14.0x in 2020-21 due to a higher debt stock. The sectors with the highest monthly turnover during the fiscal year were medium-term bonds with maturities between 3 and 10 years at 14.6x, while Real Return Bonds had the lowest turnover at 0.6x (see Chart 10).

Chart 10
Government of Canada Bond Turnover Ratio by Term to Maturity Annualized Monthly Trading Volume / Total Bond Stock
Chart 10: Government of Canada Bond Turnover Ratio by Term to Maturity Annualized Monthly Trading Volume / Total Bond Stock
Text version
Monthly 3Y and under Over 3Y to 10Y Over 10Y RRB
2012-13 17.02333 26.80865 7.363014 0.714209
2013-14 15.71883 34.48752 10.1497 0.707092
2014-15 13.55417 30.20384 9.935236 0.511081
2015-16 12.58005 25.10173 8.258998 0.555326
2016-17 14.72092 27.23979 7.217686 0.579975
2017-18 15.1238 32.34929 7.959483 0.572472
2018-19 17.1441 32.88127 8.057459 0.563944
2019-20 16.80455 33.45012 9.747845 0.585525
2020-21 10.5576 18.492 8.353059 0.904585
2021-22 9.221983 14.64696 5.379494 0.612321

Supporting Secondary Market Liquidity

During 2020-21, the Bank of Canada introduced measures to support efficient financial markets and provide liquidity to the financial system. Some of these measures include the Government of Canada Bond Purchase Program (GBPP), as well as securities repo operations (SROs) which replaced the securities lending program.Footnote 12 As financial markets recovered, the GBPP, a program to purchase Government of Canada securities in the secondary market, was wound down with the last auction held on April 21, 2022. The Bank of Canada's purchases through the GBPP totaled $92.8 billion between April 1, 2021 and March 31, 2022.

Securities repo operations, in which the Bank of Canada makes a portion of its holdings of Government of Canada securities available through daily repurchase operations, remain in place. This provides a temporary source of Government of Canada nominal bonds and treasury bills to primary dealers to support liquidity in the securities financing market. The Bank of Canada conducted 10,900 SROs in 2021-22, compared to 3,148 operations in 2020-21 when it was first introduced.

Part III
Report on the 2021-22 Debt Program

Treasury bill and bond auctions performed well and demand for Government of Canada securities remained strong throughout the fiscal year as a result of persistent demand for high-quality sovereign debt securities, Canada's strong fiscal and economic position, and support measures implemented by the Bank of Canada.

Domestic Marketable Bonds

Bond Program

In 2021-22, gross bond issuance was $257.4 billion, $112.5 billion lower than the $369.9 billion issued in 2020-21. Gross issuance consisted of $256.0 billion in nominal bonds, of which $5 billion was the inaugural green bond issuance, and $1.4 billion in Real Return Bonds (see Table 5).

Table 5
Annual Bond Program Operations
$ billions
  2017-18 2018-19 2019-20 2020-21 2021-22
Nominal (auction) 134.21 96.7 122.4 368.5 256.02
Nominal (switch) 0.8 0.8 2.8 0.0 0.0
Real Return Bonds 2.2 2.2 1.8 1.4 1.4
Total gross issuance 137.2 99.7 127.0 369.9 257.4
Cash buyback 0.0 0.0 0.0 0.0 0.0
Switch buyback -0.8 -0.8 -2.8 0.0 0.0
Total buyback -0.8 -0.8 -2.8 0.0 0.0
Net issuance 136.4 98.9 124.2 369.9 257.4

Note: Numbers may not add due to rounding.
1 This figure includes ultra-long bond auctions of $1.3 billion. Excluding ultra-long issuance would result in nominal issuance of $132.9 billion for the 2017-18 fiscal year.
2 This figure includes ultra-long bond auctions of $4.0 billion. Excluding ultra-long issuance would result in nominal issuance of $252.0 billion for the 2021-22 fiscal year.
Source: Bank of Canada.

Auction Result Indicators for Domestic Bonds

A total of 66 nominal bond auctions were conducted in 2021-22, compared to 76 auctions in 2020-21. This decrease in nominal bond auctions was largely due to lower financial requirements compared to 2020-21.

Auction coverage is defined as the total amount of bids received, including bids from the Bank of Canada, divided by the amount auctioned. All else being equal, a higher auction coverage level typically reflects strong demand and therefore should result in a lower average auction yield. Bond auction coverage was lower than the 5-year average for all maturities except Real Return Bonds (see Table 6).

The auction tail represents the number of basis points between the highest yield accepted and the average yield of an auction. A small auction tail is preferable as it is generally indicative of better transparency in the pricing of securities. Average auction tails were higher than the 5-year average across all maturities.Footnote 13

Table 6
Performance at Domestic Bond Auctions
    Nominal Bonds Real Return
Bonds
    2-year 3-year 5-year 10-year 30-year 30-year
Tail (basis points) 2021-22 0.19 0.37 0.34 0.69 0.45 n/a
  5-year average 0.17 0.26 0.29 0.52 0.41 n/a
Coverage 2021-22 2.46 2.40 2.55 2.32 2.51 2.54
  5-year average 2.67 2.58 2.59 2.35 2.53 2.42

Notes: Tail represents the number of basis points between the highest yield accepted and the average yield of an auction. Coverage is defined as the total amount of bids received, including bids from the Bank of Canada, divided by the amount auctioned.
Source: Bank of Canada.

Participation at Domestic Bond Auctions

In 2021-22, primary dealers' (PDs) allotments for nominal bonds decreased from 64 per cent in 2020-21 to 63 per cent, with customer allocations increasing from 36 per cent to 38 per cent (see Table 7),Footnote 14 excluding the Bank of Canada's allotment.Footnote 15 In aggregate, the 10 most active participants were in total allotted 75 per cent of nominal bonds auctioned in 2021-22. For Real Return Bonds, primary dealers' share of allotments decreased from 45 per cent in 2020-21 to 43 per cent in 2021-22, with customer allocations increasing from 55 per cent to 57 per cent.

Table 7
Historical Share of Bonds Allotted by Participant Category1
Nominal Bonds
Participant type 2017-18 2018-19 2019-20 2020-21 2021-22
($ billions) (%) ($ billions) (%) ($ billions) (%) ($ billions) (%) ($ billions) (%)
PDs 94 70 61 63 75 61 237 64 140 63
Customers 40 30 36 37 47 39 135 36 84 38
Top 5 participants 75 56 46 48 68 55 207 56 112 50
Top 10 participants 114 85 74 77 98 80 299 80 168 75
Total nominal bonds issued 134   97   122   373   223  

Note: Numbers may not add due to rounding.
1 Not including Bank of Canada allotment.
Source: Bank of Canada.

Table 7
Historical Share of Bonds Allotted by Participant Category1
Real Return Bonds
Participant type 2017-18 2018-19 2019-20 2020-21 2021-22
($ billions) (%) ($ billions) (%) ($ billions) (%) ($ billions) (%) ($ billions) (%)
PDs 94 70 61 63 75 61 237 64 140 63
Customers 40 30 36 37 47 39 135 36 84 38
Top 5 participants 75 56 46 48 68 55 207 56 112 50
Top 10 participants 114 85 74 77 98 80 299 80 168 75
Total nominal bonds issued 134   97   122   373   223  

Note: Numbers may not add due to rounding.
1 Not including Bank of Canada allotment.
Source: Bank of Canada.

Treasury Bills and Cash Management Bills

During 2021-22, $439.0 billion in 3-, 6- and 12-month treasury bills were issued, a decrease of $207 billion from the previous year. There were two cash management bill operations for a total issuance amount of $8.0 billion in 2021-22 compared to five operations for a total of $25.5 billion in 2020-21. Together, treasury bill and cash management bill issuance totaled $447.0 billion. As at March 31, 2022, the combined treasury bill and cash management bill stock totaled $187.4 billion, a decrease of $31.4 billion from the end of 2020-21 (see Chart 11).

Chart 11
Treasury Bills Outstanding and as a Share of Marketable Domestic Debt
Chart 11: Treasury Bills Outstanding and as a Share of Marketable Domestic Debt

Source: Bank of Canada

Text version
Domestic, Non-Inflation Adjusted, Marketable Debt Bond Stock Amount outstanding, weekly (left scale) Treasury bill share of marketable domestic debt, weekly (right scale)
604.146 2012-2013 Apr/2012 440.846 163.300 27.03
599.846 439.846 160.000 26.67
601.546 439.346 162.200 26.96
603.446 441.646 161.800 26.81
606.746 441.146 165.600 27.29
605.546 443.046 162.500 26.84
604.846 445.146 159.700 26.40
610.390 447.690 162.700 26.66
615.290 450.490 164.800 26.78
623.890 450.490 173.400 27.79
607.587 436.287 171.300 28.19
608.087 437.887 170.200 27.99
613.287 440.287 173.000 28.21
615.787 442.587 173.200 28.13
612.887 442.087 170.800 27.87
607.387 441.087 166.300 27.38
612.287 443.987 168.300 27.49
616.345 442.845 173.500 28.15
618.445 444.945 173.500 28.05
616.245 447.245 169.000 27.42
621.945 446.745 175.200 28.17
623.545 449.145 174.400 27.97
625.445 448.645 176.800 28.27
622.343 443.143 179.200 28.79
619.221 443.021 176.200 28.46
625.821 442.421 183.400 29.31
628.721 443.321 185.400 29.49
622.321 445.621 176.700 28.39
621.921 445.121 176.800 28.43
624.421 446.821 177.600 28.44
626.821 449.221 177.600 28.33
626.735 448.435 178.300 28.45
624.135 447.935 176.200 28.23
627.135 450.335 176.800 28.19
631.935 453.135 178.800 28.29
633.535 452.135 181.400 28.63
630.345 445.945 184.400 29.25
628.767 446.267 182.500 29.03
630.267 448.467 181.800 28.84
630.767 450.767 180.000 28.54
630.767 450.767 180.000 28.54
625.230 450.230 175.000 27.99
627.859 453.259 174.600 27.81
629.785 455.685 174.100 27.64
629.359 455.259 174.100 27.66
628.261 456.961 171.300 27.27
630.461 459.161 171.300 27.17
634.201 462.201 172.000 27.12
640.501 462.101 178.400 27.85
631.001 457.301 173.700 27.53
630.720 457.020 173.700 27.54
637.144 457.744 179.400 28.16
642.021 2013-2014 Apr/2013 460.621 181.400 28.25
638.406 463.306 175.100 27.43
637.413 463.113 174.300 27.34
643.321 465.421 177.900 27.65
646.478 465.378 181.100 28.01
651.016 468.416 182.600 28.05
649.016 470.816 178.200 27.46
654.436 473.336 181.100 27.67
656.636 475.536 181.100 27.58
664.236 475.936 188.300 28.35
653.518 462.818 190.700 29.18
650.918 462.518 188.400 28.94
660.118 465.318 194.800 29.51
657.128 464.328 192.800 29.34
656.628 466.628 190.000 28.94
653.728 465.628 188.100 28.77
656.828 468.528 188.300 28.67
661.244 467.544 193.700 29.29
666.544 470.344 196.200 29.44
655.257 462.457 192.800 29.42
660.657 464.857 195.800 29.64
663.457 466.657 196.800 29.66
667.757 469.457 198.300 29.70
660.626 465.226 195.400 29.58
660.426 464.726 195.700 29.63
659.026 464.126 194.900 29.57
663.826 466.926 196.900 29.66
659.326 465.926 193.400 29.33
657.326 468.226 189.100 28.77
651.750 470.850 180.900 27.76
654.550 473.650 180.900 27.64
651.350 472.650 178.700 27.44
645.096 464.696 180.400 27.96
642.672 466.672 176.000 27.39
648.028 467.328 180.700 27.88
646.227 470.027 176.200 27.27
644.477 469.977 174.500 27.08
642.427 469.527 172.900 26.91
644.377 471.477 172.900 26.83
641.077 469.977 171.100 26.69
641.077 469.977 171.100 26.69
636.897 469.297 167.600 26.32
636.363 471.263 165.100 25.94
637.224 473.524 163.700 25.69
636.474 472.774 163.700 25.72
627.872 468.472 159.400 25.39
631.822 470.422 161.400 25.55
627.722 470.322 157.400 25.07
630.372 472.972 157.400 24.97
618.181 465.381 152.800 24.72
617.383 464.583 152.800 24.75
616.896 462.696 154.200 25.00
619.446 2014-2015 Apr/2014 465.246 154.200 24.89
614.668   463.968 150.700 24.52
612.668 463.468 149.200 24.35
619.225 466.125 153.100 24.72
621.870 466.070 155.800 25.05
628.595 468.695 159.900 25.44
620.821 465.621 155.200 25.00
620.721 468.021 152.700 24.60
624.921 470.221 154.700 24.76
632.621 472.221 160.400 25.35
623.297 460.397 162.900 26.14
619.218 459.518 159.700 25.79
621.418 459.718 161.700 26.02
624.618 461.718 162.900 26.08
624.818 464.418 160.400 25.67
620.865 463.565 157.300 25.34
624.365 467.065 157.300 25.19
627.784 466.584 161.200 25.68
634.184 468.784 165.400 26.08
620.400 460.400 160.000 25.79
620.984 463.784 157.200 25.31
625.884 466.584 159.300 25.45
627.584 466.484 161.100 25.67
622.762 468.862 153.900 24.71
619.748 467.848 151.900 24.51
620.157 470.257 149.900 24.17
625.157 469.757 155.400 24.86
621.995 471.595 150.400 24.18
622.195 474.495 147.700 23.74
621.795 476.895 144.900 23.30
623.895 478.995 144.900 23.23
622.495 477.995 144.500 23.21
617.582 473.082 144.500 23.40
619.100 474.800 144.300 23.31
620.000 475.700 144.300 23.27
625.800 478.700 147.100 23.51
621.224 474.124 147.100 23.68
615.556 473.356 142.200 23.10
620.456 473.556 146.900 23.68
618.656 472.556 146.100 23.62
618.620 472.120 146.500 23.68
614.120 472.120 142.000 23.12
614.323 474.523 139.800 22.76
618.223 476.523 141.700 22.92
625.261 479.061 146.200 23.38
611.918 467.718 144.200 23.57
613.403 468.703 144.700 23.59
619.503 471.603 147.900 23.87
622.403 474.503 147.900 23.76
612.403 473.503 138.900 22.68
614.746 475.846 138.900 22.59
613.571 475.871 137.700 22.44
613.071 3/25/2015 475.371 137.700 22.46
613.686 2015-2016 Apr/2015 477.986 135.700 22.11
613.686 477.986 135.700 22.11
616.967 480.667 136.300 22.09
619.042 482.742 136.300 22.02
622.786 485.686 137.100 22.01
615.211 478.111 137.100 22.29
619.211 480.311 138.900 22.43
622.411 483.511 138.900 22.32
625.411 483.911 141.500 22.63
613.715 472.515 141.200 23.01
613.216 473.116 140.100 22.85
616.832 476.732 140.100 22.71
617.632 476.732 140.900 22.81
617.132 476.232 140.900 22.83
616.232 476.232 140.000 22.72
622.982 479.682 143.300 23.00
627.013 481.913 145.100 23.14
631.613 484.713 146.900 23.26
623.728 476.828 146.900 23.55
624.228 479.628 144.600 23.16
625.018 479.318 145.700 23.31
626.762 478.562 148.200 23.65
625.408 481.108 144.300 23.07
621.108 481.008 140.100 22.56
623.508 480.008 143.500 23.01
628.208 479.508 148.700 23.67
631.208 481.908 149.300 23.65
628.008 484.608 143.400 22.83
626.666 487.266 139.400 22.24
632.066 490.066 142.000 22.47
632.778 492.278 140.500 22.20
627.030 484.530 142.500 22.73
624.530 486.730 137.800 22.06
627.330 486.230 141.100 22.49
636.530 488.930 147.600 23.19
631.863 482.663 149.200 23.61
626.002 482.702 143.300 22.89
633.122 486.322 146.800 23.19
633.970 485.470 148.500 23.42
633.470 484.970 148.500 23.44
626.875 484.875 142.000 22.65
630.525 488.525 142.000 22.52
635.425 492.025 143.400 22.57
639.825 494.025 145.800 22.79
629.068 483.668 145.400 23.11
631.068 486.868 144.200 22.85
632.440 486.540 145.900 23.07
637.440 489.840 147.600 23.16
631.840 492.540 139.300 22.05
631.740 492.440 139.300 22.05
628.551 491.451 137.100 21.81
630.251 490.951 139.300 22.10
631.751 493.651 138.100 21.86
632.051 2016-2017 Apr/2016 493.151 138.900 21.98
637.451 495.951 141.500 22.20
640.851 499.351 141.500 22.08
644.807 501.907 142.900 22.16
634.828 493.928 140.900 22.19
636.928 496.828 140.100 22.00
643.139 500.039 143.100 22.25
648.707 501.407 147.300 22.71
638.341 491.041 147.300 23.08
636.941 491.741 145.200 22.80
639.241 491.241 148.000 23.15
643.074 491.174 151.900 23.62
646.874 493.674 153.200 23.68
641.274 496.574 144.700 22.56
647.574 499.874 147.700 22.81
652.031 502.131 149.900 22.99
655.431 505.531 149.900 22.87
646.556 495.356 151.200 23.39
643.056 494.856 148.200 23.05
644.853 497.953 146.900 22.78
648.053 501.153 146.900 22.67
653.553 503.453 150.100 22.97
644.136 499.436 144.700 22.46
645.066 498.966 146.100 22.65
650.766 498.866 151.900 23.34
653.793 501.793 152.000 23.25
647.774 501.174 146.600 22.63
648.974 503.974 145.000 22.34
653.574 507.374 146.200 22.37
653.274 509.574 143.700 22.00
647.901 504.201 143.700 22.18
643.401 507.101 136.300 21.18
652.901 510.301 142.600 21.84
653.034 512.634 140.400 21.50
656.284 513.884 142.400 21.70
652.184 516.784 135.400 20.76
657.784 516.984 140.800 21.41
654.084 515.984 138.100 21.11
657.484 519.384 138.100 21.00
653.134 518.634 134.500 20.59
649.834 518.134 131.700 20.27
651.682 521.282 130.400 20.01
655.638 523.738 131.900 20.12
649.956 516.756 133.200 20.49
652.356 520.656 131.700 20.19
656.063 520.263 135.800 20.70
659.233 523.433 135.800 20.60
655.278 518.778 136.500 20.83
650.678 521.778 128.900 19.81
651.878 523.078 128.800 19.76
656.678 522.078 134.600 20.50
660.578 521.078 139.500 21.12
660.878 2017-2018 Apr/2017 524.178 136.700 20.68
667.978 527.078 140.900 21.09
668.501 526.101 142.400 21.30
671.927 529.127 142.800 21.25
663.487 524.187 139.300 21.00
664.278 526.978 137.300 20.67
673.278 530.178 143.100 21.25
677.712 530.612 147.100 21.71
680.805 533.705 147.100 21.61
671.610 526.410 145.200 21.62
676.292 528.592 147.700 21.84
679.092 529.892 149.200 21.97
682.592 530.892 151.700 22.22
681.483 533.483 148.000 21.72
681.108 535.608 145.500 21.36
679.469 537.469 142.000 20.90
682.680 540.680 142.000 20.80
675.872 534.572 141.300 20.91
675.722 534.422 141.300 20.91
677.976 538.176 139.800 20.62
681.426 539.126 142.300 20.88
678.988 541.988 137.000 20.18
675.670 538.670 137.000 20.28
671.814 541.414 130.400 19.41
676.897 540.697 136.200 20.12
678.797 544.597 134.200 19.77
675.038 543.838 131.200 19.44
673.296 547.496 125.800 18.68
676.299 550.499 125.800 18.60
678.174 553.174 125.000 18.43
675.643 545.343 130.300 19.29
672.907 548.407 124.500 18.50
676.507 552.007 124.500 18.40
676.528 554.228 122.300 18.08
683.128 555.828 127.300 18.63
675.103 556.403 118.700 17.58
677.615 555.115 122.500 18.08
679.738 558.338 121.400 17.86
679.838 558.438 121.400 17.86
678.038 557.738 120.300 17.74
671.838 557.538 114.300 17.01
674.688 561.088 113.600 16.84
678.137 564.537 113.600 16.75
679.062 566.462 112.600 16.58
670.460 557.860 112.600 16.79
671.710 560.510 111.200 16.55
675.112 563.912 111.200 16.47
681.097 566.197 114.900 16.87
671.562 561.162 110.400 16.44
669.229 560.229 109.000 16.29
675.455 561.655 113.800 16.85
673.335 560.135 113.200 16.81
672.615 2018-2019 Apr/2018 561.915 110.700 16.46
674.215 563.715 110.500 16.39
674.415 563.915 110.500 16.38
678.815 565.915 112.900 16.63
672.252 559.352 112.900 16.79
670.720 558.520 112.200 16.73
672.520 560.320 112.200 16.68
686.295 563.195 123.100 17.94
686.420 563.320 123.100 17.93
679.485 555.585 123.900 18.23
675.890 557.990 117.900 17.44
677.064 558.264 118.800 17.55
678.689 559.889 118.800 17.50
681.364 562.064 119.300 17.51
682.364 563.064 119.300 17.48
681.989 562.289 119.700 17.55
684.264 564.564 119.700 17.49
677.265 557.565 119.700 17.67
675.465 557.265 118.200 17.50
678.765 559.265 119.500 17.61
678.765 559.265 119.500 17.61
688.265 561.265 127.000 18.45
682.798 555.798 127.000 18.60
677.948 555.248 122.700 18.10
676.589 553.889 122.700 18.14
682.006 555.106 126.900 18.61
682.126 556.226 125.900 18.46
681.676 558.176 123.500 18.12
684.436 560.936 123.500 18.04
688.867 562.567 126.300 18.33
694.067 561.067 133.000 19.16
675.877 552.577 123.300 18.24
677.377 554.077 123.300 18.20
686.077 555.577 130.500 19.02
688.077 557.577 130.500 18.97
686.277 557.077 129.200 18.83
687.977 555.077 132.900 19.32
686.360 557.160 129.200 18.82
690.690 558.890 131.800 19.08
688.790 558.890 129.900 18.86
681.390 558.890 122.500 17.98
681.858 561.758 120.100 17.61
682.805 562.705 120.100 17.59
692.359 565.359 127.000 18.34
679.719 556.219 123.500 18.17
686.019 559.219 126.800 18.48
687.019 560.219 126.800 18.46
690.419 560.619 129.800 18.80
681.227 553.627 127.600 18.73
677.777 552.777 125.000 18.44
676.777 551.777 125.000 18.47
687.887 553.587 134.300 19.52
687.387 2019-2020 Apr/2019 555.587 131.800 19.17
687.692 558.592 129.100 18.77
691.792 560.092 131.700 19.04
697.842 562.242 135.600 19.43
691.973 554.873 137.100 19.81
688.903 557.803 131.100 19.03
691.803 560.703 131.100 18.95
699.303 563.103 136.200 19.48
702.233 563.633 138.600 19.74
693.599 555.699 137.900 19.88
693.899 558.399 135.500 19.53
698.054 560.754 137.300 19.67
697.054 559.754 137.300 19.70
697.604 562.704 134.900 19.34
701.079 566.179 134.900 19.24
699.764 565.964 133.800 19.12
701.350 567.550 133.800 19.08
709.300 570.400 138.900 19.58
699.736 564.336 135.400 19.35
699.336 567.336 132.000 18.88
703.561 568.561 135.000 19.19
708.061 572.561 135.500 19.14
702.901 566.101 136.800 19.46
696.901 566.001 130.900 18.78
698.301 564.901 133.400 19.10
700.601 566.401 134.200 19.15
699.722 568.022 131.700 18.82
700.157 571.157 129.000 18.42
704.017 575.017 129.000 18.32
712.717 578.017 134.700 18.90
715.787 579.587 136.200 19.03
700.852 569.152 131.700 18.79
702.797 572.597 130.200 18.53
704.239 576.139 128.100 18.19
712.289 578.689 133.600 18.76
706.009 578.909 127.100 18.00
702.959 578.559 124.400 17.70
703.679 578.079 125.600 17.85
705.694 580.094 125.600 17.80
704.894 580.094 124.800 17.70
702.394 580.094 122.300 17.41
702.794 581.594 121.200 17.25
704.474 583.274 121.200 17.20
710.063 585.263 124.800 17.58
705.176 580.376 124.800 17.70
707.426 582.626 124.800 17.64
709.013 584.213 124.800 17.60
715.463 588.363 127.100 17.76
705.332 576.732 128.600 18.23
705.332 576.732 128.600 18.23
716.016 579.149 136.867 19.12
724.940 578.073 146.867 20.26
733.748 2020-21 Apr/2020 581.881 151.867 20.70
751.127 590.360 160.767 21.40
777.860 601.860 176.000 22.63
806.060 606.360 199.700 24.77
848.560 608.860 239.700 28.25
864.863 606.863 258.000 29.83
904.863 611.863 293.000 32.38
930.163 617.363 312.800 33.63
972.663 627.863 344.800 35.45
966.730 624.330 342.400 35.42
989.230 626.830 362.400 36.63
996.730 632.830 363.900 36.51
1020.730 641.830 378.900 37.12
1028.830 647.330 381.500 37.08
1049.830 653.330 396.500 37.77
1059.030 663.330 395.700 37.36
1062.430 668.330 394.100 37.09
1062.330 677.330 385.000 36.24
1047.522 673.122 374.400 35.74
1041.622 683.122 358.500 34.42
1040.022 692.122 347.900 33.45
1035.022 703.122 331.900 32.07
1017.198 694.098 323.100 31.76
1012.298 699.398 312.900 30.91
1016.698 705.398 311.300 30.62
1015.298 708.398 306.900 30.23
1022.498 718.398 304.100 29.74
1026.498 729.398 297.100 28.94
1039.898 741.398 298.500 28.70
1052.698 755.398 297.300 28.24
1060.698 773.398 287.300 27.09
1050.122 772.822 277.300 26.41
1054.522 772.822 281.700 26.71
1068.722 786.822 281.900 26.38
1052.322 786.822 265.500 25.23
1057.722 791.822 265.900 25.14
1060.522 800.222 260.300 24.54
1066.122 800.222 265.900 24.94
1062.722 808.222 254.500 23.95
1067.722 813.222 254.500 23.84
1062.122 813.222 248.900 23.43
1069.322 818.222 251.100 23.48
1068.322 827.222 241.100 22.57
1073.322 830.222 243.100 22.65
1061.306 823.806 237.500 22.38
1068.406 829.806 238.600 22.33
1062.706 834.106 228.600 21.51
1070.706 840.106 230.600 21.54
1055.280 824.680 230.600 21.85
1064.080 835.680 228.400 21.46
1069.112 845.112 224.000 20.95
1077.112 854.112 223.000 20.70
1077.912 859.112 218.800 20.30
1081.712 2021-22 Apr/2021 863.112 218.600 20.21
1081.812 867.612 214.200 19.80
1098.612 877.612 221.000 20.12
1089.712 883.112 206.600 18.96
1081.746   875.346 206.400 19.08
1089.046 884.846 204.200 18.75
1102.846 889.846 213.000 19.31
1100.546 895.346 205.200 18.65
1097.285 886.885 210.400 19.17
1101.685 891.285 210.400 19.10
1112.085 896.285 215.800 19.40
1119.085 901.285 217.800 19.46
1127.085 909.285 217.800 19.32
1132.085 914.285 217.800 19.24
1147.785 922.785 225.000 19.60
1148.385 927.785 220.600 19.21
1160.085 933.285 226.800 19.55
1151.117 924.317 226.800 19.70
1162.717 934.317 228.400 19.64
1161.817 937.817 224.000 19.28
1165.217 941.817 223.400 19.17
1152.653 929.253 223.400 19.38
1154.553 934.553 220.000 19.05
1150.153 934.553 215.600 18.75
1154.553 941.553 213.000 18.45
1164.053 951.053 213.000 18.30
1158.853 951.053 207.800 17.93
1158.453 955.053 203.400 17.56
1161.353 959.553 201.800 17.38
1172.353 970.553 201.800 17.21
1160.853 965.053 195.800 16.87
1158.253 966.053 192.200 16.59
1162.753 970.553 192.200 16.53
1169.253 977.053 192.200 16.44
1166.078 977.878 188.200 16.14
1166.478 978.278 188.200 16.13
1175.178 981.778 193.400 16.46
1181.178 987.778 193.400 16.37
1178.378 987.778 190.600 16.17
1178.378 987.778 190.600 16.17
1179.178 992.778 186.400 15.81
1186.678 1000.278 186.400 15.71
1186.678 1003.278 183.400 15.45
1176.678 993.278 183.400 15.59
1186.378 1001.778 184.600 15.56
1190.378 1005.778 184.600 15.51
1193.878 1009.278 184.600 15.46
1181.878 997.278 184.600 15.62
1183.678 997.278 186.400 15.75
1192.478 1006.078 186.400 15.63
1196.478 1009.078 187.400 15.66
1202.478 1015.078 187.400 15.58
2022-23 Apr/2022

In 2021-22, all treasury bill and cash management bill auctions were fully covered. Excluding 12-month treasury bills, auction tails were smaller than the 5-year average across treasury bill maturity sectors. Coverage ratios for treasury bill auctions in 2021-22 were lower than the 5-year average for all treasury bill maturity sectors (see Table 8).

Table 8
Performance at Treasury Bill and Cash Management Bill Auctions
    3-month 6-month 12-month Cash
management
bills
Tail 2021-22 0.58 0.62 0.77 1.12
  5-year average 0.64 0.70 0.67 2.51
Coverage 2020-21 1.98 2.13 2.07 2.01
  5-year average 2.17 2.37 2.39 2.59

Notes: Tail represents the number of basis points between the highest yield accepted and the average yield of an auction. Coverage is defined as the total amount of bids received, including bids from the Bank of Canada, divided by the amount auctioned. Tail and coverage ratio were calculated as the weighted averages, where the weight assigned to each auction equals the percentage total allotment in the auction's issuance sector.
Source: Bank of Canada.

Participation at Treasury Bill Auctions

In 2021-22, the share of treasury bills allotted to primary dealers declined by 10 percentage points to 74 per cent from 84 per cent in 2020-21, and the share allotted to customers increased to 26 per cent from 16 per cent (see Table 9). The 10 most active participants were in total allotted 86 per cent of these securities.

Table 9
Historical Share of Amount Allotted to Participants by Type of Auction1
Treasury Bills

Participant type
2017-18 2018-19 2019-20 2020-21 2021-22
($ billions) (%) ($ billions) (%) ($ billions) (%) ($ billions) (%) ($ billions) (%)
PDs 230 91 239 88 246 84 543 84 324 74
Customers 23 9 33 12 45 16 103 16 115 26
Top 5 participants 174 69 190 70 190 65 431 67 260 59
Top 10 participants 235 93 242 89 246 85 577 89 379 86
Total treasury bills issued 253   272   291   646   439  

Note: Numbers may not add due to rounding.
1 Net of Bank of Canada allotment.
Source: Bank of Canada.

Foreign Currency Debt

Foreign currency debt is used to fund the Exchange Fund Account (EFA), which represents the largest component of the official international reserves. The primary objectives of the international reserves are to aid in the control and protection of the external value of the Canadian dollar and provide a source of liquidity to the Government of Canada.

The EFA is primarily made up of liquid foreign currency securities and special drawing rights (SDRs). Liquid foreign currency securities are composed primarily of debt securities of highly rated sovereigns, their agencies that borrow in public markets and are supported by a comprehensive government guarantee, and highly rated supranational organizations. SDRs are international reserve assets created by the IMF, the value of which is based on a basket of international currencies. The official international reserves also include Canada's reserve position at the IMF. This position, which represents Canada's investment in the activities of the IMF, fluctuates according to drawdowns and repayments from the IMF. The Report on the Management of Canada's Official International Reserves provides information on the objectives, composition and performance of the reserves portfolio.

The market value of Canada's official international reserves as at March 31, 2022 increased to US$103.8 billion from US$83.4 billion as at March 31, 2021. EFA assets, which totaled US$99.4 billion as at March 31, 2022, up from US$78.9 billion as at March 31, 2021, were held at a level that is consistent with the government's commitment to maintain holdings of liquid foreign currency securities at or above 3 per cent of nominal GDP.

The EFA is funded by liabilities of the Government of Canada denominated in, or converted to, foreign currencies. Funding requirements are primarily met through an ongoing program of cross-currency swaps funded by domestic issuances. As at March 31, 2022, Government of Canada cross-currency swaps outstanding stood at US$64.8 billion (par value).

In addition to cross-currency swaps funded by domestic issuances, the EFA is funded through a short-term US-dollar paper program (Canada bills), a global bond program, and a medium-term note (MTN) program (Canada notes and euro medium-term notes) which had a value of zero at year end. The funding method of choice depends on funding needs, costs, market conditions and funding diversification objectives (see Table 10).

Table 10
Outstanding Foreign Currency Issues
par value in millions of US dollars
March 31, 2022 March 31, 2021 Change
Swapped domestic issues 64,754 55,175 9,579
Global bonds 9,500 9,000 500
Canada bills 2,060 3,226 -1,166
Medium-term notes      
Euro medium-term notes
0 0 0
Canada notes
0 50 -50
Total 76,314 67,451 8,863

Note: Liabilities are stated at the exchange rates prevailing on March 31, 2021.

As at March 31, 2022, the Government of Canada had three global bonds outstanding (see Table 11). The government had no medium-term notes outstanding as of March 31, 2022.

Table 11
Government of Canada Global Bonds Outstanding, as at March 31, 2022

Year of issuance
Market Amount in original currency Yield
(%)
Term to maturity
(years)
Coupon
(%)
Benchmark
interest rate—government bonds
Spread from
benchmark at
issuance (basis points)
Spread over swap curve in relevant currency on issuance date (basis points)
2017 Global US$3 billion 2.066 5 2.000 US 9.0 LIBOR + 1.5
2020 Global US$3 billion 1.690 5 1.625 US 6.0 LIBOR - 6.5
2021 Global US$3.5 billion 0.854 5 0.750 US 6.0 LIBOR - 2

Note: LIBOR = London Interbank Offered Rate.
Source: Department of Finance Canada.
The MTN program provides the government with additional flexibility to raise foreign currency. The program allows for issuance in a number of currencies, including the US dollar, euro and British pound sterling, using either a US MTN or EMTN prospectus. During 2020-21, no medium-term notes were issued.

Retail Debt

In Budget 2017, the Government of Canada announced the discontinuation of the Canada Savings Bonds and Canada Premium Bonds programs, given that retail debt is no longer a cost-effective source of funds or a preferred investment by Canadians. Following the announcement, Canadians were reassured that all remaining funds in the Payroll Savings Program, the Canada Retirement Savings Plan and the Canada Retirement Income Fund, along with any unredeemed certificated bonds, remain safe and guaranteed by the Government of Canada. The last maturity date was December 1, 2021 and therefore all outstanding bonds have now matured.

In 2021-22, the stock of Canada Savings Bonds and Canada Premium Bonds held by retail investors decreased from $0.3 billion to zero (see Chart 12).

Chart 12
Evolution of Retail Debt Stock, as at March 31
Chart 12: Evolution of Retail Debt Stock, as at March 31

Source: Bank of Canada

Text version
Year Retail Debt (left scale) Market Debt Retail Debt as percentage of Market Debt (right scale)
2013 7.5 668.0 1.1
2014 6.3 648.7 1.0
2015 5.7 649.5 0.9
2016 5.1 669.7 0.8
2017 4.5 686.4 0.7
2018 2.6 695.9 0.4
2019 1.2 721.1 0.2
2020 0.5 765.2 0.1
2021 0.29897322 1137.5 0.0
2022 0.000000000 1218.0 0.0

In 2021-22, the stock of retail debt declined by $0.2 billion (see Table 12).

Table 12
Retail Debt Gross Sales and Redemptions, 2021-22
$ billions
  Gross sales Redemptions Net change
Payroll 0.0 0.1 -0.1
Cash 0.0 0.1 -0.1
Total 0.0 0.2 -0.2

Note: Numbers may not add due to rounding.
Source: Bank of Canada.

Cash Management

The Bank of Canada, as the government's fiscal agent, manages the Receiver General (RG) Consolidated Revenue Fund, from which the balances required for the government's day-to-day operations are drawn. The core objective of cash management is to ensure that the government has sufficient cash available, at all times, to meet its operating requirements.

Cash consists of money on deposit to the credit of the RG for Canada with the Bank of Canada. Cash with the Bank of Canada includes RG operating balances and a $20 billion callable demand deposit held for the prudential liquidity plan (PLP).

During the COVID-19 crisis, the federal government built up its cash position in order to ensure that funds were available for contingency purposes. By the end of the 2021-22 fiscal year, the cash balance had grown further from its level in 2020-21. The year-end daily liquidity position increased by $33.4 billion to $91.0 billion by the end of 2021-22 (see Chart 13 and Table 13).

Chart 13
Daily Liquidity Position for 2021-22
Chart 13: Daily Liquidity Position for 2021-22

Source: Bank of Canada

Text version
Date Callable Deposit @ Bank of Canada RG @ Bank of Canada RG @ Financial Institutions Total
1-Apr-21 20 29 -                                                               0 49
5-Apr-21 20 35 -                                                               0 55
6-Apr-21 20 40 -                                                               0 60
7-Apr-21 20 40 -                                                               0 60
8-Apr-21 20 36 -                                                               0 56
9-Apr-21 20 35 -                                                               0 55
12-Apr-21 20 37 -                                                               0 57
13-Apr-21 20 35 -                                                               0 55
14-Apr-21 20 33 -                                                               0 53
15-Apr-21 20 38 -                                                               0 58
16-Apr-21 20 38 -                                                               0 58
19-Apr-21 20 44 -                                                               0 64
20-Apr-21 20 38 -                                                               0 58
21-Apr-21 20 36 -                                                               0 56
22-Apr-21 20 19 -                                                               0 39
23-Apr-21 20 20 -                                                               0 40
26-Apr-21 20 26 -                                                               0 46
27-Apr-21 20 27 -                                                               0 47
28-Apr-21 20 23 -                                                               0 43
29-Apr-21 20 28 -                                                               0 48
30-Apr-21 20 32 -                                                               0 52
3-May-21 20 25 -                                                               0 45
4-May-21 20 28 -                                                               0 48
5-May-21 20 36 -                                                               0 56
6-May-21 20 32 -                                                               0 52
7-May-21 20 36 -                                                               0 56
10-May-21 20 41 -                                                               0 61
11-May-21 20 40 -                                                               0 60
12-May-21 20 40 -                                                               0 60
13-May-21 20 45 -                                                               0 65
14-May-21 20 49 -                                                               0 69
17-May-21 20 47 -                                                               0 67
18-May-21 20 47 -                                                               0 67
19-May-21 20 44 -                                                               0 64
20-May-21 20 37 -                                                               0 57
21-May-21 20 39 -                                                               0 59
25-May-21 20 41 -                                                               0 61
26-May-21 20 39 -                                                               0 59
27-May-21 20 38 -                                                               0 58
28-May-21 20 38 -                                                               0 58
31-May-21 20 39 -                                                               0 59
1-Jun-21 20 22 -                                                               0 42
2-Jun-21 20 24 -                                                               0 44
3-Jun-21 20 29 -                                                               0 49
4-Jun-21 20 30 -                                                               0 50
7-Jun-21 20 33 -                                                               0 53
8-Jun-21 20 32 -                                                               0 52
9-Jun-21 20 30 -                                                               0 50
10-Jun-21 20 34 -                                                               0 54
11-Jun-21 20 35 -                                                               0 55
14-Jun-21 20 37 -                                                               0 57
15-Jun-21 20 37 -                                                               0 57
16-Jun-21 20 39 -                                                               0 59
17-Jun-21 20 35 -                                                               0 55
18-Jun-21 20 29 -                                                               0 49
21-Jun-21 20 32 -                                                               0 52
22-Jun-21 20 31 -                                                               0 51
23-Jun-21 20 39 -                                                               0 59
24-Jun-21 20 37 -                                                               0 57
25-Jun-21 20 41 -                                                               0 61
28-Jun-21 20 37 -                                                               0 57
29-Jun-21 20 36 -                                                               0 56
30-Jun-21 20 42 -                                                               0 62
2-Jul-21 20 40 -                                                               0 60
5-Jul-21 20 46 -                                                               0 66
6-Jul-21 20 53 -                                                               0 73
7-Jul-21 20 54 -                                                               0 74
8-Jul-21 20 59 -                                                               0 79
9-Jul-21 20 62 -                                                               0 82
12-Jul-21 20 66 -                                                               0 86
13-Jul-21 20 67 -                                                               0 87
14-Jul-21 20 61 -                                                               0 81
15-Jul-21 20 58 -                                                               0 78
16-Jul-21 20 54 -                                                               0 74
19-Jul-21 20 60 -                                                               0 80
20-Jul-21 20 54 -                                                               0 74
21-Jul-21 20 50 -                                                               0 70
22-Jul-21 20 57 -                                                               0 77
23-Jul-21 20 60 -                                                               0 80
26-Jul-21 20 61 -                                                               0 81
27-Jul-21 20 60 -                                                               0 80
28-Jul-21 20 54 -                                                               0 74
29-Jul-21 20 53 -                                                               0 73
30-Jul-21 20 54 -                                                               0 74
2-Aug-21 20 54 -                                                               0 74
3-Aug-21 20 48 -                                                               0 68
4-Aug-21 20 53 -                                                               0 73
5-Aug-21 20 56 -                                                               0 76
6-Aug-21 20 62 -                                                               0 82
9-Aug-21 20 69 -                                                               0 89
10-Aug-21 20 68 -                                                               0 88
11-Aug-21 20 68 -                                                               0 88
12-Aug-21 20 63 -                                                               0 83
13-Aug-21 20 68 -                                                               0 88
16-Aug-21 20 65 -                                                               0 85
17-Aug-21 20 64 -                                                               0 84
18-Aug-21 20 60 -                                                               0 80
19-Aug-21 20 59 -                                                               0 79
20-Aug-21 20 57 -                                                               0 77
23-Aug-21 20 59 -                                                               0 79
24-Aug-21 20 57 -                                                               0 77
25-Aug-21 20 59 -                                                               0 79
26-Aug-21 20 58 -                                                               0 78
27-Aug-21 20 57 -                                                               0 77
30-Aug-21 20 59 -                                                               0 79
31-Aug-21 20 60 -                                                               0 80
1-Sep-21 20 40 -                                                               0 60
2-Sep-21 20 37 -                                                               0 57
3-Sep-21 20 43 -                                                               0 63
7-Sep-21 20 48 -                                                               0 68
8-Sep-21 20 48 -                                                               0 68
9-Sep-21 20 42 -                                                               0 62
10-Sep-21 20 42 -                                                               0 62
13-Sep-21 20 43 -                                                               0 63
14-Sep-21 20 43 -                                                               0 63
15-Sep-21 20 44 -                                                               0 64
16-Sep-21 20 36 -                                                               0 56
17-Sep-21 20 42 -                                                               0 62
20-Sep-21 20 39 -                                                               0 59
21-Sep-21 20 36 -                                                               0 56
22-Sep-21 20 37 -                                                               0 57
23-Sep-21 20 39 -                                                               0 59
24-Sep-21 20 39 -                                                               0 59
27-Sep-21 20 37 -                                                               0 57
28-Sep-21 20 35 -                                                               0 55
29-Sep-21 20 41 -                                                               0 61
1-Oct-21 20 35 -                                                               0 55
4-Oct-21 20 38 -                                                               0 58
5-Oct-21 20 42 -                                                               0 62
6-Oct-21 20 47 -                                                               0 67
7-Oct-21 20 42 -                                                               0 62
8-Oct-21 20 47 -                                                               0 67
12-Oct-21 20 46 -                                                               0 66
13-Oct-21 20 46 -                                                               0 66
14-Oct-21 20 45 -                                                               0 65
15-Oct-21 20 50 -                                                               0 70
18-Oct-21 20 49 -                                                               0 69
19-Oct-21 20 50 -                                                               0 70
20-Oct-21 20 45 -                                                               0 65
21-Oct-21 20 41 -                                                               0 61
22-Oct-21 20 46 -                                                               0 66
25-Oct-21 20 50 -                                                               0 70
26-Oct-21 20 51 -                                                               0 71
27-Oct-21 20 48 -                                                               0 68
28-Oct-21 20 40 -                                                               0 60
29-Oct-21 20 41 -                                                               0 61
1-Nov-21 20 30 -                                                               0 50
2-Nov-21 20 33 -                                                               0 53
3-Nov-21 20 43 -                                                               0 63
4-Nov-21 20 44 -                                                               0 64
5-Nov-21 20 43 -                                                               0 63
8-Nov-21 20 45 -                                                               0 65
9-Nov-21 20 44 -                                                               0 64
10-Nov-21 20 42 -                                                               0 62
12-Nov-21 20 42 -                                                               0 62
15-Nov-21 20 47 -                                                               0 67
16-Nov-21 20 45 -                                                               0 65
17-Nov-21 20 46 -                                                               0 66
18-Nov-21 20 41 -                                                               0 61
19-Nov-21 20 42 -                                                               0 62
22-Nov-21 20 41 -                                                               0 61
23-Nov-21 20 41 -                                                               0 61
24-Nov-21 20 43 -                                                               0 63
25-Nov-21 20 39 -                                                               0 59
26-Nov-21 20 36 -                                                               0 56
29-Nov-21 20 35 -                                                               0 55
30-Nov-21 20 36 -                                                               0 56
1-Dec-21 20 27 -                                                               0 47
2-Dec-21 20 30 -                                                               0 50
3-Dec-21 20 37 -                                                               0 57
6-Dec-21 20 38 -                                                               0 58
7-Dec-21 20 37 -                                                               0 57
8-Dec-21 20 36 -                                                               0 56
9-Dec-21 20 37 -                                                               0 57
10-Dec-21 20 38 -                                                               0 58
13-Dec-21 20 36 -                                                               0 56
14-Dec-21 20 41 -                                                               0 61
15-Dec-21 20 47 -                                                               0 67
16-Dec-21 20 44 -                                                               0 64
17-Dec-21 20 50 -                                                               0 70
20-Dec-21 20 49 -                                                               0 69
21-Dec-21 20 46 -                                                               0 66
22-Dec-21 20 46 -                                                               0 66
23-Dec-21 20 42 -                                                               0 62
24-Dec-21 20 44 -                                                               0 64
29-Dec-21 20 46 -                                                               0 66
30-Dec-21 20 45 -                                                               0 65
31-Dec-21 20 50 -                                                               0 70
4-Jan-22 20 51 -                                                               0 71
5-Jan-22 20 54 -                                                               0 74
6-Jan-22 20 56 -                                                               0 76
7-Jan-22 20 57 -                                                               0 77
10-Jan-22 20 62 -                                                               0 82
11-Jan-22 20 62 -                                                               0 82
12-Jan-22 20 63 -                                                               0 83
13-Jan-22 20 63 -                                                               0 83
14-Jan-22 20 66 -                                                               0 86
17-Jan-22 20 69 -                                                               0 89
18-Jan-22 20 69 -                                                               0 89
19-Jan-22 20 65 -                                                               0 85
20-Jan-22 20 60 -                                                               0 80
21-Jan-22 20 58 -                                                               0 78
24-Jan-22 20 62 -                                                               0 82
25-Jan-22 20 62 -                                                               0 82
26-Jan-22 20 62 -                                                               0 82
27-Jan-22 20 56 -                                                               0 76
28-Jan-22 20 54 -                                                               0 74
31-Jan-22 20 58 -                                                               0 78
1-Feb-22 20 43 -                                                               0 63
2-Feb-22 20 46 -                                                               0 66
3-Feb-22 20 54 -                                                               0 74
4-Feb-22 20 59 -                                                               0 79
7-Feb-22 20 63 -                                                               0 83
8-Feb-22 20 62 -                                                               0 82
9-Feb-22 20 62 -                                                               0 82
10-Feb-22 20 62 -                                                               0 82
11-Feb-22 20 63 -                                                               0 83
14-Feb-22 20 67 -                                                               0 87
15-Feb-22 20 69 -                                                               0 89
16-Feb-22 20 65 -                                                               0 85
17-Feb-22 20 65 -                                                               0 85
18-Feb-22 20 59 -                                                               0 79
21-Feb-22 20 58 -                                                               0 78
22-Feb-22 20 62 -                                                               0 82
23-Feb-22 20 62 -                                                               0 82
24-Feb-22 20 57 -                                                               0 77
25-Feb-22 20 57 -                                                               0 77
28-Feb-22 20 62 -                                                               0 82
1-Mar-22 20 44 -                                                               0 64
2-Mar-22 20 54 -                                                               0 74
3-Mar-22 20 69 -                                                               0 89
4-Mar-22 20 73 -                                                               0 93
7-Mar-22 20 74 -                                                               0 94
8-Mar-22 20 73 -                                                               0 93
9-Mar-22 20 71 -                                                               0 91
10-Mar-22 20 70 -                                                               0 90
11-Mar-22 20 71 -                                                               0 91
14-Mar-22 20 74 -                                                               0 94
15-Mar-22 20 75 -                                                               0 95
16-Mar-22 20 76 -                                                               0 96
17-Mar-22 20 79 -                                                               0 99
18-Mar-22 20 74 -                                                               0 94
21-Mar-22 20 74 -                                                               0 94
22-Mar-22 20 76 -                                                               0 96
23-Mar-22 20 76 -                                                               0 96
24-Mar-22 20 73 -                                                               0 93
25-Mar-22 20 75 -                                                               0 95
28-Mar-22 20 74 -                                                               0 94
29-Mar-22 20 76 -                                                               0 96
30-Mar-22 20 74 -                                                               0 94
31-Mar-22 20 71 -                                                               0 91
Table 13
Year-End Daily Liquidity Position
$ billions
  March 31, 2021 March 31, 2022 Annual average Net change
Callable deposits with the Bank of Canada 20.0 20.0 20.0 0.0
RG balances with the Bank of Canada 37.6 71.0 48.6 33.4
Total 57.6 91.0 68.6 33.4

Note: Numbers may not add due to rounding.
Source: Bank of Canada.

Prudential Liquidity Management

The government holds liquid financial assets in the form of domestic cash deposits and foreign exchange reservesFootnote 16 to promote investor confidence and safeguard its ability to meet payment obligations in situations where normal access to funding markets may be disrupted or delayed. The government's overall liquidity levels are managed to normally cover at least one month (i.e., 23 business days) of net projected cash flows, including coupon payments and debt refinancing needs. The 23-day PLP requirement is a forward-looking measure that changes daily due to daily actual cash balances and new projected cash requirements.

Investment of Receiver General Cash Balances

There were no RG auctions of cash to financial institutions conducted in 2021-22. RG auctions ceased in the previous fiscal year since financial system liquidity was high and participants did not need additional funds. These auctions did not resume in 2021-22 as financial system liquidity remained high.

Annex 1
Completed Treasury Evaluation Reports

In order to inform future decision making and to support transparency and accountability, different aspects of the Government of Canada's treasury activities are reviewed periodically under the Treasury Evaluation Program. The program's purpose is to obtain periodic external assessments of the frameworks and processes used in the management of wholesale and retail market debt, cash and reserves as well as the treasury activities of other entities under the authority of the Minister.

Reports on the findings of these evaluations and the government's response to each evaluation are tabled with the House of Commons Standing Committee on Public Accounts by the Minister. Copies are also sent to the Auditor General of Canada. The reports are posted on the Department of Finance Canada website.

Area Year
Debt Management Objectives 1992
Debt Structure—Fixed/Floating Mix 1992
Internal Review Process 1992
External Review Process 1992
Benchmarks and Performance Measures 1994
Foreign Currency Borrowing—Canada Bills Program 1994
Developing Well-Functioning Bond and Bill Markets 1994
Liability Portfolio Performance Measurement 1994
Retail Debt Program 1994
Guidelines for Dealing With Auction Difficulties 1995
Foreign Currency Borrowing—Standby Line of Credit and FRN 1995
Treasury Bill Program Design 1995
Real Return Bond Program 1998
Foreign Currency Borrowing Programs 1998
Initiatives to Support a Well-Functioning Wholesale Market 2001
Debt Structure Target/Modelling 2001
Reserves Management Framework1 2002
Bond Buybacks1 2003
Funds Management Governance Framework1 2004
Retail Debt Program1 2004
Borrowing Framework of Major Federal Government-Backed Entities1 2005
Receiver General Cash Management Program1 2006
Exchange Fund Account Evaluation1 2006
Risk Management Report1 2007
Evaluation of the Debt Auction Process1 2010
Evaluation of the Asset Allocation Framework of the Exchange Fund Account1 2012
Report of the Auditor General of Canada on Interest-Bearing Debt2 2012
Crown Borrowing Program Evaluation1 2013
Retail Debt Evaluation1 2015

1 Available on the Department of Finance Canada website.
2 This audit was conducted outside of the Treasury Evaluation Program.

Annex 2
Debt Management Policy Measures Taken Since 1997

The fundamental objectives of debt management are to raise stable and low-cost funding to meet the financial needs of the Government of Canada and to maintain a well-functioning market for Government of Canada securities. For the government as a debt issuer, a well-functioning market attracts investors and contributes to keeping funding costs low and stable over time. For market participants, a liquid and transparent secondary market in government debt provides risk-free assets for investment portfolios, a pricing benchmark for other debt issues and derivatives, and a primary tool for hedging interest rate risk. The following table lists significant policy measures that have been taken to achieve stable, low-cost funding and ensure a well-functioning Government of Canada securities market.

Measure Year
Discontinued the 3-year bond benchmark 1997
Moved from weekly to bi-weekly treasury bill auctions 1998
Introduced a cash-based bond buyback program 1999
Introduced standardized benchmarks (fixed maturities and increased size) 1999
Started regular cross-currency swap-based funding of foreign assets 1999
Introduced a switch-based bond buyback program 2001
Allowed the reconstitution of bonds beyond the size of the original amount issued 2001
Introduced the cash management bond buyback program 2001
Reduced targeted turnaround times for auctions and buyback operations 2001
Advanced the timing of treasury bill auctions from 12:30 p.m. to 10:30 a.m. 2004
Advanced the timing of bond auctions from 12:30 p.m. to 12:00 p.m. 2005
Reduced the timing between bond auctions and cash buybacks to 20 minutes 2005
Dropped one quarterly 2-year auction 2006
Announced the maintenance of benchmark targets through fungibility (common dates) 2006
Consolidated the borrowings of three Crown corporations 2007
Changed the maturity of the 5-year benchmark and dropped one quarterly 5-year auction 2007
Reintroduced the 3-year bond benchmark 2009
Increased the frequency of cash management bond buyback operations from bi-weekly to weekly 2010
Announced a new framework for the medium-term debt management strategy 2011
Announced plans to increase the level of prudential liquidity by $35 billion over 3 years 2011
Added four new maturity dates—February 1, May 1, August 1 and November 1 2011
Increased benchmark target range sizes in the 2-, 3- and 5-year sectors 2011
Announced a temporary increase in longer-term debt issuance 2012
Announced changes to the Terms and Conditions Governing the Morning Auction of Receiver General Cash Balances 2013
Introduced ultra-long bond issuance 2014
Discontinued 3-year issuance 2015
Increased benchmark target range sizes in the 2- and 5-year sectors 2015
Increased benchmark target range sizes in the 2-, 5- and 10-year sectors 2016
Reintroduced the 3-year bond benchmark 2016
Introduced a pilot program to increase flexibility in the maximum repurchase amount at CMBB operations 2017
Discountinued the sales of new Canada Savings Bonds 2017
Pilot program to increase flexibility of CMBB operations made permanent 2018
Ceased all buyback operations and RG auctions 2020
Added a second 10-year benchmark bond per year—December 1 2020
Increased the frequency of treasury bills auctions from bi-weekly to weekly (i.e., first half of the fiscal year) 2020
Reduced the frequency of treasury bills auctions from weekly to bi-weekly (i.e., second half of the fiscal year) 2020
Introduced federal green bond program 2022

Annex 3
Glossary

asset-liability management: An investment decision-making framework that is used to concurrently manage a portfolio of assets and liabilities.

average term to maturity: The weighted average amount of time until the securities in the debt portfolio mature.

benchmark bond: A bond that is considered by the market to be the standard against which all other bonds in that term area are evaluated against. It is typically a bond issued by a sovereign, since sovereign debt is usually the most creditworthy within a domestic market. Usually it is the most liquid bond within each range of maturities and is therefore priced accurately.

budgetary deficit: The shortfall between government annual revenues and annual budgetary expenses.

buyback on a cash basis: The repurchase of bonds for cash. Buybacks on a cash basis are used to maintain the size of bond auctions and new issuances.

buyback on a switch basis: The exchange of outstanding bonds for new bonds in the current building benchmark bond.

Canada bill: A promissory note denominated in US dollars, issued for terms of up to 270 days. Canada bills are issued for foreign exchange reserves funding purposes only.

Canada Investment Bond: A non-marketable fixed-term security instrument issued by the Government of Canada.

Canada note: A promissory note usually denominated in US dollars, and available in book-entry form. Canada notes can be issued for terms of nine months or longer, and can be issued at a fixed or a floating rate. Canada notes are issued for foreign exchange reserves funding purposes only.

Canada Premium Bond: A non-marketable security instrument issued by the Government of Canada, which is redeemable once a year on the anniversary date or during the 30 days thereafter without penalty.

Canada Savings Bond: A non-marketable security instrument issued by the Government of Canada, which is redeemable on demand by the registered owner(s), and which, after the first three months, pays interest up to the end of the month prior to cashing.

cross-currency swap: An agreement that exchanges one type of debt obligation for another involving different currencies and the exchange of the principal amounts and interest payments.

duration: Measures the sensitivity of the price of a bond or portfolio to fluctuations in interest rates. It is a measure of volatility and is expressed in years. The higher the duration number, the greater the interest rate risk for bond or portfolio prices.

electronic trading system: An electronic system that provides real-time information about securities and enables the user to execute financial trades.

Exchange Fund Account (EFA): An account that aids in the control and protection of the external value of the Canadian dollar and which provides a source of liquidity for the Government of Canada. Assets held in the EFA are managed to provide liquidity to the government and to promote orderly conditions for the Canadian dollar in the foreign exchange markets, if required.

financial source/requirement: The difference between the cash inflows and outflows of the government's Receiver General account. In the case of a financial requirement, it is the amount of new borrowing required from outside lenders to meet financing needs in any given year.

fixed-rate share of market debt: The proportion of market debt that does not mature or need to be repriced within one year (i.e. the inverse of the refixing share of market debt).

foreign exchange reserves: The foreign currency assets (e.g. interest-earning bonds) held to support the value of the domestic currency. Canada's foreign exchange reserves are held in the Exchange Fund Account.

Government of Canada securities auction: A process used for selling Government of Canada debt securities (mostly marketable bonds and treasury bills) in which issues are sold by public tender to government securities distributors and approved clients.

government securities distributor: An investment dealer or bank that is authorized to bid at Government of Canada auctions and through which the government distributes Government of Canada treasury bills and marketable bonds.

interest-bearing debt: Debt consisting of unmatured debt, or debt issued on the credit markets, liabilities for pensions and other future benefits, and other liabilities.

Large Value Transfer System: An electronic funds transfer system introduced in February 1999 and operated by the Canadian Payments Association. It facilitates the electronic transfer of Canadian-dollar payments across the country virtually instantaneously.

marketable bond: An interest-bearing certificate of indebtedness issued by the Government of Canada, having the following characteristics: bought and sold on the open market; payable in Canadian or foreign currency; having a fixed date of maturity; interest payable either in coupon or registered form; face value guaranteed at maturity.

marketable debt: Market debt that is issued by the Government of Canada and sold via public tender or syndication. These issues can be traded between investors while outstanding.

money market: The market in which short-term capital is raised, invested and traded using financial instruments such as treasury bills, bankers' acceptances, commercial paper, and bonds maturing in one year or less.

non-market debt: The government's internal debt, which is, for the most part, federal public sector pension liabilities and the government's current liabilities (such as accounts payable, accrued liabilities, interest payments and payments of matured debt).

overnight rate; overnight financing rate; overnight money market rate; overnight lending rate: An interest rate at which participants with a temporary surplus or shortage of funds are able to lend or borrow until the next business day. It is the shortest term to maturity in the money market.

primary dealer: A member of the core group of government securities distributors that maintain a certain threshold of activity in the market for Government of Canada securities. The primary dealer classification can be attained in either treasury bills or marketable bonds, or both.

primary market: The market in which issues of securities are first offered to the public.

Real Return Bond: A bond whose interest payments are based on real interest rates. Unlike standard fixed-coupon marketable bonds, the semi-annual interest payments on Government of Canada Real Return Bonds are determined by adjusting the principal by the change in the Consumer Price Index.

refixing share of market debt: The proportion of market debt that matures or needs to be repriced within one year (i.e., the inverse of the fixed-rate share of market debt).

refixing share of market debt to gross domestic product (GDP): The amount of market debt that matures or needs to be repriced within one year relative to nominal GDP for that year.

secondary market: The market where existing securities trade after they have been sold to the public in the primary market.

sovereign market: The market for debt issued by a government.

treasury bill: A short-term obligation sold by public tender. Treasury bills, with terms to maturity of 3, 6 or 12 months, are currently auctioned on a bi-weekly basis.

ultra-long bond: A bond with a maturity of 40 years or longer.

yield curve: The conceptual or graphic representation of the term structure of interest rates. A "normal" yield curve is upward sloping, with short-term rates lower than long-term rates. An "inverted" yield curve is downward sloping, with short-term rates higher than long-term rates. A "flat" yield curve occurs when short-term rates are the same as long-term rates.

Annex 4
Contact Information

Consultations and Communications Branch
Department of Finance Canada
14th floor
90 Elgin Street
Ottawa, Ontario   K1A 0G5

Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

Media Enquiries:
613-369-4000

Reference Tables

I - Total Liabilities, Outstanding Market Debt and Debt Charges, as at March 31
II - Government of Canada Outstanding Market Debt, as at March 31
III - Issuance of Government of Canada Domestic Bonds
IV - Outstanding Government of Canada Domestic Bonds, as at March 31, 2022
V - Government of Canada Cross-Currency Swaps Outstanding, as at March 31, 2022
VI - Crown Corporation Borrowings, as at March 31

Reference Table I
Total Liabilities, Outstanding Market Debt and Debt Charges, as at March 31
$ billions
Liabilities
Year Market debt Market debt value adjustments Accounts payable and accrued liabilities Pension and other liabilities Total liabilities
1986 201.2 -0.4 39.4 79.1 319.4
1987 228.6 -0.4 42.1 84.7 355.0
1988 250.8 -0.9 47.2 90.9 388.0
1989 276.3 -2.2 50.2 97.1 421.4
1990 294.6 -2.9 53.2 104.5 449.3
1991 323.9 -3.2 54.9 112.1 487.7
1992 351.9 -2.2 56.1 118.5 524.2
1993 382.7 -3.0 58.4 125.1 563.2
1994 414.0 -1.8 63.7 131.4 607.3
1995 441.0 -3.4 71.3 139.8 648.7
1996 469.5 -1.7 74.9 148.5 691.3
1997 476.9 0.3 75.9 156.3 709.4
1998 466.8 1.4 81.7 160.9 710.8
1999 457.7 2.6 83.7 168.2 712.2
2000 454.2 -0.2 83.9 175.8 713.6
2001 444.9 1.3 88.5 179.0 713.6
2002 440.9 0.9 83.2 177.9 703.0
2003 438.6 -1.1 83.2 178.3 699.0
2004 436.5 -2.5 85.2 180.9 700.1
2005 431.8 -4.3 97.7 179.8 705.0
2006 427.3 -6.1 101.4 179.9 702.5
2007 418.8 -4.7 106.5 185.1 705.8
2008 394.1 -3.4 110.5 191.2 692.3
2009 510.9 3.1 114.0 200.4 828.4
2010 564.4 -5.3 120.5 208.7 888.3
2011 596.8 -5.7 119.1 217.2 927.5
2012 631.0 -4.7 125.0 226.1 977.5
2013 668.0 4.4 118.7 236.2 1,027.4
2014 648.7 10.3 111.4 245.2 1,015.8
2015 649.5 15.7 123.6 251.4 1,040.2
2016 669.7 18.5 127.9 262.0 1,078.0
2017 695.1 18.5 132.5 270.7 1,116.9
2018 704.3 16.9 154.8 281.4 1,157.4
2019 721.1 15.8 159.7 282.6 1,185.2
2020 765.2 18.6 163.8 301.0 1,248.6
2021 1,109.8 15.4 207.4 319.7 1,652.2
2022 1,232.7 10.6 260.3 335.1 1,838.7
Reference Table I
Total Liabilities, Outstanding Market Debt and Debt Charges, as at March 31
$ billions
Accumulated deficit and debt charges
Year Total liabilities Financial assets Net debt Non-financial assets Accumulated deficit Gross public
debt charges
1986 319.4 70.1 249.2 21.4 227.8 27.7
1987 355.0 73.2 281.8 24.2 257.7 28.7
1988 388.0 75.0 313.0 26.3 286.7 31.2
1989 421.4 77.9 343.6 29.0 314.6 35.5
1990 449.3 74.5 374.8 31.0 343.8 41.2
1991 487.7 76.6 411.1 33.4 377.7 45.0
1992 524.2 78.5 445.7 35.8 410.0 43.9
1993 563.2 76.0 487.2 38.2 449.0 41.3
1994 607.3 79.3 527.9 40.4 487.5 40.1
1995 648.7 81.2 567.5 43.3 524.2 44.2
1996 691.3 92.7 598.6 44.4 554.2 49.4
1997 709.4 100.4 609.0 46.1 562.9 47.3
1998 710.8 103.6 607.2 47.2 559.9 43.1
1999 712.2 109.3 602.9 48.7 554.1 43.3
2000 713.6 123.5 590.1 50.2 539.9 43.4
2001 713.6 141.9 571.7 51.7 520.0 43.9
2002 703.0 137.7 565.3 53.4 511.9 39.7
2003 699.0 139.5 559.6 54.2 505.3 37.3
2004 700.1 149.1 551.0 54.8 496.2 35.8
2005 705.0 155.4 549.6 54.9 494.7 34.1
2006 702.5 165.6 536.9 55.4 481.5 33.8
2007 705.8 181.9 523.9 56.6 467.3 33.9
2008 692.3 176.0 516.3 58.6 457.6 33.3
2009 828.4 298.9 529.4 61.5 467.9 28.3
2010 888.3 300.8 587.5 63.4 524.1 26.6
2011 927.5 304.0 623.5 66.6 556.9 28.6
2012 977.5 317.6 659.9 68.0 591.9 29.0
2013 1,027.4 337.8 689.5 68.9 620.6 25.5
2014 1,015.8 318.5 696.4 70.4 626.0 24.7
2015 1,040.2 336.7 703.5 74.6 628.9 24.2
2016 1,078.0 365.8 712.2 77.8 634.4 21.8
2017 1,116.9 382.8 734.1 82.6 651.5 21.2
2018 1,157.4 397.5 752.9 81.6 671.3 21.9
2019 1,185.2 413.0 772.1 86.7 685.5 23.3
2020 1,248.6 435.7 812.9 91.5 721.4 24.5
2021 1,652.2 502.4 1,149.8 101.1 1,048.8 20.4
2022 1,838.7 600.3 1,238.4 103.9 1,134.5 24.5
Reference Table II
Government of Canada Outstanding Market Debt, as at March 31
$ billions
Payable in Canadian dollars
Year Treasury bills Marketable bonds1 Retail debt Canada Pension
Plan bonds
Total
1986 62.0 81.1 44.2 0.4 187.7
1987 77.0 94.4 44.3 1.8 217.5
1988 81.1 103.9 53.3 2.5 240.8
1989 102.7 115.7 47.8 3.0 269.2
1990 118.6 127.7 40.9 3.1 290.2
1991 139.2 143.6 34.4 3.5 320.7
1992 152.3 158.1 35.6 3.5 349.5
1993 162.1 178.5 34.4 3.5 378.4
1994 166.0 203.4 31.3 3.5 404.3
1995 164.5 225.7 31.4 3.5 425.1
1996 166.1 252.8 31.4 3.5 453.8
1997 135.4 282.6 33.5 3.5 454.9
1998 112.3 294.6 30.5 3.5 440.8
1999 97.0 295.8 28.2 4.1 425.0
2000 99.9 294.4 26.9 3.6 424.7
2001 88.7 295.5 26.4 3.5 414.1
2002 94.2 294.9 24.0 3.4 416.5
2003 104.6 289.2 22.6 3.4 419.8
2004 113.4 279.0 21.3 3.4 417.1
2005 127.2 266.7 19.1 3.4 416.3
2006 131.6 261.9 17.3 3.1 413.9
2007 134.1 257.9 15.2 1.7 408.9
2008 117.0 253.8 13.1 1.0 384.9
2009 192.5 295.3 12.5 0.5 500.8
2010 175.9 367.9 11.8 0.5 556.1
2011 163.0 416.1 10.1 0.0 589.2
2012 163.2 448.1 8.9 0.0 620.3
2013 180.7 469.0 7.5 0.0 657.2
2014 153.0 473.3 6.3 0.0 632.6
2015 135.7 487.9 5.7 0.0 629.2
2016 138.1 504.1 5.1 0.0 647.2
2017 136.7 536.3 4.5 0.0 677.5
2018 110.7 575.0 2.6 0.0 688.2
2019 134.3 569.5 1.2 0.0 705.1
2020 151.9 596.9 0.5 0.0 749.2
2021 218.8 875.3 0.3 0.0 1,109.8
2022 187.4 1,030.9 0.0 0.0 1,218.3

1 Inflation adjusted.

Reference Table II
Government of Canada Outstanding Market Debt, as at March 31
$ billions
Payable in foreign currencies
Year Canada bills Marketable bonds Canada notes1 Euro medium-term notes1 Standby
drawings
Term loans Total
1986 0.0 9.3 0.0 0.0 2.2 2.2 13.8
1987 1.0 8.9 0.0 0.0 0.0 2.0 12.0
1988 1.0 7.9 0.0 0.0 0.0 2.3 11.3
1989 1.1 6.3 0.0 0.0 0.0 0.9 8.3
1990 1.4 4.3 0.0 0.0 0.0 0.0 5.7
1991 1.0 3.6 0.0 0.0 0.0 0.0 4.5
1992 0.0 3.4 0.0 0.0 0.0 0.0 3.4
1993 2.6 2.8 0.0 0.0 0.0 0.0 5.4
1994 5.6 5.0 0.0 0.0 0.0 0.0 10.7
1995 9.0 7.9 0.0 0.0 0.0 0.0 16.9
1996 7.0 9.5 0.3 0.0 0.0 0.0 16.8
1997 8.4 12.5 2.1 0.0 0.0 0.0 23.0
1998 9.4 14.6 1.7 1.5 0.0 0.0 27.2
1999 10.2 19.7 1.3 4.9 0.0 0.0 36.0
2000 6.0 21.4 1.1 4.1 0.0 0.0 32.6
2001 7.2 21.2 1.6 3.7 0.0 0.0 33.7
2002 3.4 19.8 1.2 3.2 0.0 0.0 27.5
2003 2.6 14.5 1.2 3.3 0.0 0.0 21.6
2004 3.4 13.2 1.3 3.0 0.0 0.0 20.8
2005 3.9 9.9 1.1 1.7 0.0 0.0 16.5
2006 4.7 7.6 0.5 1.5 0.0 0.0 14.3
2007 1.8 6.7 0.5 1.6 0.0 0.0 10.6
2008 1.5 6.1 0.5 1.6 0.0 0.0 9.7
2009 8.7 0.3 0.0 1.7 0.0 0.0 10.6
2010 2.5 5.8 0.0 0.0 0.0 0.0 8.2
2011 2.0 5.6 0.0 0.0 0.0 0.0 7.7
2012 2.1 8.6 0.0 0.0 0.0 0.0 10.7
2013 2.1 8.7 0.0 0.0 0.0 0.0 10.8
2014 2.3 13.0 0.6 0.1 0.0 0.0 16.0
2015 3.8 14.8 1.2 0.5 0.0 0.0 20.3
2016 4.7 15.3 1.6 0.9 0.0 0.0 22.5
2017 3.5 11.5 1.7 0.9 0.0 0.0 17.6
2018 2.6 10.9 1.7 0.9 0.0 0.0 16.0
2019 2.7 11.0 1.7 0.6 0.0 0.0 16.0
2020 2.2 12.7 0.7 0.4 0.0 0.0 15.9
2021 4.1 11.3 0.1 0.0 0.0 0.0 15.4
2022 2.6 11.9 0.0 0.0 0.0 0.0 14.5

1 Amounts for 2016 and 2017 have been restated following historical revisions.

Reference Table II
Government of Canada Outstanding Market Debt, as at March 31
$ billions
Total market debt
Year Total payable in Canadian dollars Total payable in
foreign currencies
Less: Government's
holdings and consolidation adjustment1
Total market debt Average
interest rate
(%)
1987 217.5 12.0 -0.9 228.6 9.3
1988 240.8 11.3 -1.2 250.8 9.6
1989 269.2 8.3 -1.2 276.3 10.8
1990 290.2 5.7 -1.3 294.6 11.2
1991 320.7 4.5 -1.3 323.9 10.7
1992 349.5 3.4 -1.0 351.8 8.9
1993 378.4 5.4 -1.1 382.7 7.9
1994 404.3 10.7 -1.0 414.0 6.8
1995 425.1 16.9 -1.0 441.0 8.0
1996 453.8 16.8 -1.0 469.5 7.3
1997 454.9 23.0 -1.1 476.8 6.7
1998 440.8 27.2 -1.2 466.8 6.6
1999 425.0 36.0 -3.3 457.7 6.7
2000 424.7 32.6 -3.1 454.2 6.2
2001 414.1 33.7 -2.9 444.9 6.1
2002 416.5 27.5 -3.1 440.9 5.6
2003 419.8 21.6 -2.7 438.6 5.3
2004 417.1 20.8 -1.5 436.4 4.9
2005 416.3 16.5 -1.1 431.7 4.6
2006 413.9 14.3 -1.0 427.2 4.7
2007 408.9 10.6 -0.7 418.9 4.9
2008 384.9 9.7 -0.5 394.1 4.6
2009 500.8 10.6 -0.6 510.8 3.2
2010 556.1 8.2 -0.1 564.2 2.7
2011 589.2 7.7 -0.1 596.8 2.8
2012 620.3 10.7 -0.1 631.0 2.7
2013 657.2 10.8 -0.0 668.0 2.5
2014 632.6 16.0 -0.3 648.7 2.4
2015 629.2 20.3 -0.4 649.5 2.3
2016 647.2 22.5 0.1 669.7 2.0
2017 677.5 17.6 -0.4 695.1 1.9
2018 688.3 16.0 0.9 704.3 2.0
2019 705.1 16.0 -0.4 721.1 2.2
2020 749.2 15.9 -0.3 765.2 2.0
2021 1,094.4 15.4 -0.3 1,109.8 1.4
2022 1,218.3 14.5 -0.2 1,232.7 1.4

1 Because certain comparative figures have been restated to reflect the presentation method used in recent years, the numbers presented in this reference table can differ from numbers presented in other sections of the Debt Management Report. In the reference table, ''Government's holdings and consolidation adjustment'' is presented separately but in the rest of the report the amount is incorporated into the figures. For more information, please consult table 6.2 and table 6.3 of the Public Accounts of Canada 2022.

Reference Table III
Issuance of Government of Canada Domestic Bonds
$ billions
Gross issuance  
Nominal1 Real Return Bonds    Buybacks  
Fiscal
year
2-year 3-year 5-year 10-year 30-year 50-year Green Total 30-year  Total Cash Switch Total Net issuance
1995-96 11.1 5.1 17.0 10.5 5.0     49.7 1.0 49.7     0.0 49.7
1996-97 12.0 11.1 13.3 11.8 5.8     54.0 1.7 55.5     0.0 55.7
1997-98 14.0   9.9 9.3 5.0     38.2 1.7 39.9     0.0 39.9
1998-99 14.0   9.8 9.2 3.3     36.3 1.6 37.9     0.0 37.9
1999-00 14.2   14.0 12.9 3.7     44.8 1.3 46.0 -2.7 0.0 -2.7 43.3
2000-01 14.1   10.5 10.1 3.8     38.5 1.4 39.9 -2.8 0.0 -2.8 37.1
2001-02 14.0   10.0 9.9 6.3     40.2 1.4 41.6 -5.3 -0.4 -5.6 35.9
2002-03 13.9   11.0 12.6 4.8     42.3 1.4 43.7 -7.1 -5.0 -12.1 31.6
2003-04 13.0   10.7 11.5 4.2     39.4 1.4 40.8 -5.2 -5.0 -10.2 30.7
2004-05 12.0   9.6 10.6 3.3     35.5 1.4 36.9 -6.8 -4.7 -11.4 25.5
2005-06 10.0   9.2 10.0 3.2     32.4 1.5 33.9 -5.3 -3.3 -8.6 25.3
2006-07 10.3   7.8 10.4 3.3     31.8 1.6 33.4 -5.1 -4.7 -9.8 23.5
2007-08 11.7   6.3 10.7 3.4     32.0 2.3 34.3 -4.3 -2.4 -6.7 27.6
2008-09 23.2   29.0 15.7 5.1     72.9 2.1 75.0 -3.2 -2.7 -6.0 69.0
2009-10 31.5 20.1 24.0 17.4 7.0     100.0 2.2 102.2 0.0 -2.1 -2.1 100.1
2010-11 36.3 18.8 21.2 12.0 5.0     93.3 2.2 95.5 0.0 -4.4 -4.4 91.2
2011-12 44.0 18.0 21.0 10.0 4.7     97.7 2.2 99.9 -3.0 -3.0 -5.9 94.0
2012-13 35.9 13.9 20.4 16.5 6.7     93.4 2.2 95.6 -0.4 -1.1 -1.5 94.1
2013-14 29.7 16.2 20.4 14.0 5.0     85.3 2.2 87.5 0.0 -1.0 -1.0 86.5
2014-15 38.4 16.2 20.4 13.3 4.6 3.5   92.9 2.2 95.1 0.0 -0.5 -0.5 94.6
2015-16 50.2   26.8 10.0 3.2     90.2 2.2 92.4 0.0 -0.7 -0.7 91.7
2016-17 62.4 19.5 30.0 15.0 4.3     131.2 2.2 133.4 0.0 -0.8 -0.8 132.6
2017-18 59.1 24.7 30.6 15.0 4.3 1.3   135.0 2.2 137.2 0.0 -0.8 -0.8 136.4
2018-19 48.0 8.2 24.0 13.5 3.8     97.5 2.2 99.7 0.0 -0.8 -0.8 98.9
2019-20 53.0 19.7 33.5 13.5 5.5     125.2 1.8 127.0 0.0 -2.8 -2.8 124.2
2020-21 129.0 56.5 77.5 73.5 32.0     368.5 1.4 369.9 0.0 0.0 0.0 369.9
2021-22 67.0 29.0 44.0 79.0 28.0 4.0 5.0 256.0 1.4 257.4 0.0 0.0 0.0 257.4

1 Including nominal issuance through switch buyback operations.

Reference Table IV
Outstanding Government of Canada Domestic Bonds, as at March 31, 2022
Fixed-coupon bonds

Maturity date
Amount
($ millions)
Coupon rate
(%)
1-May-2022 20,000 1.5
1-Jun-2022 206 9.25
1-Jun-2022 12,700 2.75
1-Aug-2022 30,000 0.25
1-Sep-2022 25,200 1
1-Nov-2022 37,000 0.25
1-Feb-2023 32,000 0.25
1-Mar-2023 24,600 1.75
1-May-2023 30,000 0.25
1-Jun-2023 14,200 1.5
1-Jun-2023 2,359 8
1-Aug-2023 20,000 0.25
1-Sep-2023 40,500 2
1-Nov-2023 16,500 0.5
1-Feb-2024 17,500 0.75
1-Mar-2024 11,908 2.25
1-Apr-2024 37,000 0.25
1-May-2024 7,000 1.5
1-Jun-2024 13,700 2.5
1-Sep-2024 16,065 1.5
1-Oct-2024 14,000 0.75
1-Mar-2025 17,300 1.25
1-Apr-2025 6,000 1.5
1-Jun-2025 13,100 2.25
1-Jun-2025 2,134 9
1-Sep-2025 47,500 0.5
1-Mar-2026 34,000 0.25
1-Jun-2026 13,472 1.5
1-Sep-2026 23,000 1
1-Mar-2027 17,000 1.25
1-Jun-2027 14,740 1
1-Jun-2027 3,621 8
1-Jun-2028 13,500 2
1-Jun-2029 12,300 2.25
1-Jun-2029 10,599 5.75
1-Dec-2029 5,000 2.25
1-Jun-2030 44,200 1.25
1-Dec-2030 40,000 0.5
1-Jun-2031 42,000 1.5
1-Dec-2031 32,000 1.5
1-Jun-2032 5,000 2
1-Jun-2033 11,989 5.75
1-Jun-2037 11,731 5
1-Jun-2041 13,838 4
1-Dec-2045 16,300 3.5
1-Dec-2048 14,900 2.75
1-Dec-2051 51,817 2
1-Dec-2053 19,000 1.75
1-Dec-2064 8,750 2.75
Fixed-coupon bonds—Total 967,228
Real Return Bonds
Fixed-coupon bonds

Maturity Date
Amount Coupon rate Inflation adjustment Outstanding amount
($ millions) (%) ($ millions) ($ millions)
1-Dec-2026 5,250 4.25 3,433 8,683
1-Dec-2031 5,800 4.00 3,419 9,219
1-Dec-2036 5,850 3.00 2,401 8,251
1-Dec-2041 6,550 2.00 2,005 8,555
1-Dec-2044 7,700 1.50 1,976 9,676
1-Dec-2047 7,700 1.25 1,372 9,072
1-Dec-2050 7,600 0.50 894 8,494
1-Dec-2054 1,400 0.25 56 1,456
Real Return Bonds—
Total
47,850   15,556 63,406

Note: Outstanding bond amounts reported in this table are in accordance with Bank of Canada reports, which may vary slightly with Government of Canada amounts due to differences in classification methods.
Source: Bank of Canada.

Reference Table V
Government of Canada Cross-Currency Swaps Outstanding, as at March 31, 2022
CAD$ millions
Swaps of domestic obligations  
Maturity date USD EUR JPY GBP Total
2022 4,444 249 0 0 4,693
2023 7,060 484 1,890 140 9,573
2024 4,183 1,791 1,181 213 7,369
2025 3,188 263 1,396 3,931 8,778
2026 6,851 588 1,130 764 9,332
2027 2,657 1,798 0 2,315 6,770
2028 10,758 1,245 0 0 12,002
2029 4,376 2,243 0 0 6,619
2030 2,813 3,810 0 0 6,623
2031 8,345 622 0 246 9,213
2032 6,176 1,397 257 411 8,240
Total 60,849 14,490 5,854 8,020 89,213

Note: Foreign currency swaps converted to Canadian dollars using Bank of Canada closing exchange rates as of March 31, 2022. Table does not include $4,665 million in foreign exchange forwards and $408 million in foreign exchange swaps that were outstanding as at March 31, 2022. Numbers may not add due to rounding.

Reference Table VI
Crown Corporation Borrowings, as at March 31
$ millions

Borrowings from the market
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Export Development Canada 24,141 26,613 36,393 41,985 46,687 49,226 55,470 55,217 63,249 47,532 44,319
Business Development Bank of Canada 658 648 507 305 253 163 139 137 142 128 0
Farm Credit Canada 913 691 615 669 762 815 833 818 833 852 673
Canada Mortgage and Housing Corporation 2,221 1,870 1,465 1,429 282 0 0 0 0 0 0
Canada Housing Trust1 213,251 212,639 205,113 207,544 217,392 225,306 233,981 237,516 244,643 265,191 258,831
Canada Post Corporation 1,051 1,051 1,051 1,051 997 997 997 997 997 997 998
Other 106 106 128 137 109 52 48 49 45 27 50
Total 242,341 243,617 245,272 253,120 266,482 276,559 291,469 294,734 309,909 314,727 304,871

1 Canada Housing Trust has been included in the government reporting entity effective April 1, 2005 as a result of the application of a new accounting standard.

Government's Loans and Advances to Enterprise Crown Corporations
$ millions
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Business Development
Bank of Canada
12,561 13,214 14,320 15,676 16,942 18,811 20,470 22,235 23,405 18,226 20,072
Canada Mortgage and Housing Corporation1 66,595 63,123 21,173 10,708 10,531 9,811 8,687 8,095 14,377 15,284 17,307
Farm Credit Canada 19,326 21,174 22,029 22,691 23,438 25,684 28,009 29,862 32,654 34,342 37,456
Other 92 90 149 333 340 455 468 5,2442 6,6872 10,4192 16,5562
Total 98,574 97,602 57,670 49,408 51,251 54,761 57,633 65,436 77,122 78,271 91,391

1 Includes outstanding lending related to the Insured Mortgage Purchase Program for 2009 to 2014.
2 Includes lending to Canada Development Investment Corporation for the purchase of entities that own and operate the Trans Mountain pipeline.
Source: Public Accounts of Canada.

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