Government of Canada Securities - July 2006

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Canadian Economy

Selected Canadian economic statistics

Government of Canada debt (accumulated deficit) and bugetary balance

Canada's current account balance and merchandise trade balance

Canada's net international liabilities

Upcoming economic data releases of interest

July	August	September


June CPI (July 21)	July Labour Force Survey (August 4)	August Labour Force Survey (September 8)
May GDP (July 31)	July CPI (August 22)	August CPI (September 19)
	June GDP (August 31)	July GDP (September 29)
	National and Economic Accounts April-June 2006 (August 31)

3-month treasury bill rates

1-year government bond rates

Exchange rate

Overnight money market rate

Canadian monetary aggregates

Outstanding Government of Canada treasury bills, bonds (by term matury) and retail debt

Recent Government of Canada bond auction results

Auction date	Term	Maturity date	Coupon rate	Issue amount	Average price	Average yield	Auction coverage**	Tail***


	(years)		(%)	(millions of dollars)		(%)		(basis points)
June 14, 2006	2	December 1, 2008	4.25	3,400	99.985	4.257	2.579	0.2
May 31, 2006	30	December 1, 2036	3*	450	127.138	1.834	2.325	n.a.
May 17, 2006	5	September 1, 2011	3.75	2,100	97.318	4.323	2.535	0.3
April 19, 2006	10	June 1, 2016	4	2,300	96.130	4.480	2.544	0.4

* Real Return Bond. Coverage is defined as the ratio of total bids at auction to the amount auctioned. *Tail is defined as the high accepted yield minus the average yield. Source: Bank of Canada.

Government of Canada bond auctions

Type of issue	Auction date (2006)	Further details of issue (2006)	Dated and delivered (2006)	Amount maturing*


				(millions of dollars)
30-year	July 19	July 13	July 24	0
10-year	August 2	July 27	August 8	0
5-year	August 16	August 10	August 21	0
2-year	August 30	August 24	September 1	5,194,149,000
Real Return Bond	September 27	September 21	October 2	0

Note: In addition, this quarter seven operations are planned under the Government of Canada bond repurchase program. Four repurchase operations will be held in conjunction with each nominal bond auction, and three switch repurchase operations will take place: one on July 6 in the 20-year sector, one on July 26 in the 5-year sector and one on September 14 in the 10-year sector. Further details will be released on the Thursday prior to these operations. The target amount for the repurchase this quarter is $2.2 billion. *Maturity of $768 billion on October 1, 2006. Source: Bank of Canada.

Government of Canada bond market benchmarks

Term	Maturity	Coupon	Amount outstanding	Yield (June 29, 2006)


		(%)	(millions of dollars)	(%)
Fixed-coupon
2-year	June 1, 2008	3.75	3,000	4.38
5-year	September 1, 2010	4.00	9,459	4.47
10-year	June 1, 2015	4.50	10,300	4.60
30-year	June 1, 2033	5.75	13,410	4.64
Real return
30-year	December 1, 2026	4.25	5,250	1.91

Source: Department of Finance.

Upcoming Government of Canada marketable bond maturities

Outstanding Government of Canada foreign currency debt
	(C$ millions)*
Canada bills	1,685
Canada notes	984
Outstanding under EMTN program	1,406
63⁄4% US$ bonds maturing August 28, 2006	1,111
65⁄8% NZ$ bonds maturing October 3, 2007	342
47⁄8% EUR bonds maturing July 7, 2008**	1,797
51⁄4% US$ bonds maturing November 5, 2008	2,779

At par value, adjusted for exchange rates as of June 29, 2006. * Original issue in Deutsche Marks was redenominated into euros on February 19, 1999. Source: Bank of Canada.

Government of Canada long-term credit ratings

	Standard & Poor’s	Moody’s Investors Service	Dominion Bond Rating Service


	Current	Current	Current
*Domestic debt* – Trend	AAA Stable	Aaa Stable	AAA Stable
*Foreign debt* – Trend	AAA Stable	Aaa Stable	AAA Stable

Except as noted, the information in Government of Canada Securities is based upon data available as of June 30, 2006.

For further information, contact Ian Blachford at 613-992-6386.

For additional copies or subscription inquiries, please contact the Distribution Centre at 613-995-2855.