Other retail products
Treasury Bills
Treasury bills (T-bills) are marketable securities that are sold at auction every two weeks by the Minister of Finance through the Bank of Canada. They are purchased by investment dealers, who then re-sell them to retail investors.
T-bills:
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have terms to maturity of 3, 6 or 12 months; |
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are sold at a discount to the face value (below par) and mature at 100% of the face value (par). The difference between the issue price and par at maturity is the rate of return; and |
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can be purchased in denominations as low as $1,000. |
T-bills have a guaranteed return if held to maturity but, unlike the CPB or the CSB, can be bought or sold prior to maturity at market prices, which vary from day to day.
Marketable Bonds
Marketable bonds are marketable securities that are periodically sold at auction by the Minister of Finance through the Bank of Canada. They are purchased by investment dealers, who then re-sell them to retail investors.
These bonds:
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have terms to maturity ranging from 1 year to 30 years; |
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have a fixed semi-annual interest payment; and |
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can be usually purchased in denominations as low as $1,000. |
Marketable bonds have a guaranteed return if held to maturity but, unlike the CPB or the CSB, can be bought or sold prior to maturity at market prices, which vary from day to day.
Real Return Bonds
Real return bonds (RRB) are marketable securities that are sold at auction by the Minister of Finance through the Bank of Canada. They are purchased by investment dealers, who then re-sell them to retail investors.
These bonds:
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are typically issued for a 30-year term; |
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feature fixed semi-annual interest payments that are adjusted for changes in the Consumer Price Index (CPI) for Canada; |
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are stable and protect you against inflation over the long term; and |
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cannot be cashed prior to maturity, but they can be bought and sold prior to maturity at market prices, which vary according to changes in real yields and fluctuations in the CPI. |
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| Rates |
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| Bond Values |
Click here to check the value of your bonds
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