TREE NEWS update: The Bank of Canada’s purchases of Government of Canada bonds under its balance sheet operations may not begin until 2028, a deputy governor said. The timing implies the central bank will keep its balance sheet on a slower normalization path than previously expected, with sovereign bond buying held off for roughly the next few years.
Bank of Canada’s bond purchases may not start until 2028, deputy governor says
AI take
The signal here is about the pace of balance-sheet normalization rather than about demand for Canadian government debt, since the purchases in question are a central-bank operational tool, not a market bid. A slower path keeps settlement balances and repo dynamics in the foreground for dealers and money-market participants who track the Bank's footprint. Whether the 2028 timing holds, and how the Bank frames the conditions attached to restarting purchases, is the open question worth watching.
Generated by AI for reference only.
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