Investizmo » news http://www.investizmo.com Tue, 01 Jun 2010 13:00:40 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Bank of Canada’s $2 billion injection http://www.investizmo.com/2008/04/16/bank-of-canadas-2-billion-injection/ http://www.investizmo.com/2008/04/16/bank-of-canadas-2-billion-injection/#comments Wed, 16 Apr 2008 12:12:03 +0000 iGuru http://www.investizmo.com/index.php/?p=20 Normally I’m not a big fan of needles. However, when the prescription is from the Bank of Canada, I’ll make an exception. Today the bank of Canada will be adding about $2 billion in short term Treasury Bills into the market. Sounds boring, eh? Well its not.

Ever since the beginning of the Credit Crunch™ people have been scarred and moved their short term investments from Commercial Paper & Banker Acceptance to Treasury Bills. As the Canadian Govt is still running surpluses, supply has been tight and rates tumbled as the price rose (classic supply/demand). The 1 month T-Bill has been as low 1.2% institutionally a few weeks ago. This morning with the new injection, we’re back in the 2.90% range. Just a quick note that although many sources will be quoting that 1 month Bill at 2.90%, as a retail investor, expect a much lower quote. I’ll save that explanation for another day…. unless you ask my in the forum.

 

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