(December 1 – 16:20 ET) – The Department of Finance and the Bank of Canada has issued a consultation document on the design and operation of government debt programs over 2001—2002.

Although no major bond program restructuring is anticipated, the government would like input on whether further changes to the T-Bill program should be considered. It is interested in views regarding enhancement of liquidity and investor interest.

The outstanding stock of treasury bills has been in the $80 billion to $100 billion range for the past two years, down from a peak of $165 billion five years ago. It is expected to stay in a range of $75—$95 billion over the next two years. It seeks specific comment on the structure of this business, and seeks similar comment on the bond side.

It seeks comment on the development of electronic trading and its potential effect on the fixed-income market, including the recent CSA proposal regarding bond market transparency.

Comments are due by December 21.
-IE Staff