Sales of Canada Savings Bonds on Temporary Hold

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My relationship with Canada Savings Bonds goes back to when my parents bought them for me as a child.

The federal government has announced that the sales of the Canada Saving Bond is delayed and Finance Minister Jim Flaherty is hoping to have them available by tomorrow.


"We were setting the rate, and there's been some fluctuations in market rates, as you know, recently," he said.

"So we wanted to make sure that the rate set for Canada Savings Bonds would be a reasonable rate that would make them attractive."

He declined to say what the interest rate will be.

A message posted on a government website said the 2008 bond campaign, scheduled to start Monday, had been put on hold.

"There are no bonds on sale at this time," the website said.

"The new sales date, interest rates and bond series will be announced shortly. Rates for outstanding issues of bonds will be announced at the same time."

'This is unprecedented as far as I know.'—Evelyn Jacks, Winnipeg-based tax expert

The bonds have been a Canadian tradition since 1946 and are backed by the government and promoted as a foolproof way for small investors to save. They go on sale each fall.



"I would call it an eyebrow-raiser, for sure," said Evelyn Jacks, a tax expert based in Winnipeg. "This is unprecedented as far as I know."

She added that it "certainly speaks to the unprecedented kinds of activities that we're seeing on the marketplace in the last couple of weeks."

Margaret Koniuck, a financial planner in Winnipeg, said the delay may also be tied to the coming federal election.

There is speculation the government may be trying to avoid any negative criticism of the way it is dealing with a global financial crisis.

"It does certainly make one stop and wonder what's going on," she told CBC News.

Canadians frequently purchase CSBs through payroll savings programs every year, their overall popularity has been dwindling.