The Bank of Canada today announced that it will sell $1.8 billion of its holdings of treasury bills.

The central bank said that the transaction will partially offset the temporary increase in assets associated with the term purchase and resale transactions announced yesterday. The 27-day Term PRA to be auctioned today has been set at $10 billion.

The central bank also said that it will, on a temporary basis, offer a new Term PRA facility for primary dealers and other money market participants.

The Treasury bill sale will take place, and settle, Oct. 16. The T-bills mature November 13. The results of the auction will be published on the Bank of Canada’s Web site by noon on the transaction date.

IE