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Provinces May Accelerate Borrowing Spree After Yield Spike

Premier Of Saskatchewan Scott Moe Chairs Meeting Of Canada's Premiers
Photographer: Cole Burston/Bloomberg
Updated on

Canadian provinces may rush into the debt markets in the coming weeks as a spike in bond yields threatens to distort their borrowing cost estimates.

Plans to issue around C$135 billion ($106.2 billion) of bonds this fiscal year could accelerate amid the worldwide bond rout. “Our expectation is that some of the provinces are probably looking to issue and get things done,” said Tom O’Gorman, director of fixed income at Franklin Templeton Canada.