(December 1 – 12:00 ET) – The
Department of Finance has released
its Debt Management Report for
fiscal year 1998-99.

It’s the first time the report
has been released to the public.
The report provides a full
accounting of the government’s
first back-to-back surplus since
1952.

It also details the Federal debt
management strategy and progress.
Finance says that its basic
strategy is to raise stable,
low-cost funding for running the
government, while maintaining a
well-functioning market for
government securities.

The report notes that Finance
reduced its interest rate risk by
getting two-thirds of its debt in
fixed-rate form. It launched a
pilot bond buyback program to help
maintain liquidity in the primary
bond market.

Finance implemented new auction
rules for the primary market, and
worked with the Investment Dealers
Association to draft a code of
conduct to reinforce the integrity
of the secondary market.

-IE Staff

For more please see:


here and
www.fin.gc.ca