Trading in government of canada treasury bills is settled on the same day as the transaction. government of canada bonds with a term to maturity of three years or less settle on the second clearing day after the transaction takes place. government of canada bonds with a term to maturity of more than three years settle on the third clearing day after the transaction takes place. trades in mortgage-backed securities that take place on the third clearing day before month end to the 11th calendar day of the following month settle on the first clearing day on or after the 15th calendar day of the following month. interest on a bond accrues from the day after the previous interest payment date up to and including the day of settlement. the client that buys a bond pays the previous holder the purchase price plus the interest that has accrued since the last interest date.