BOC CUTS PROVINCIAL BOND PURCHASES TO ONCE A WEEK

The Bank of Canada is reducing the frequency of provincial bond purchases, saying credit markets need less support than when the program began last May. The central bank will hold one reverse auction per week for provincial bonds instead of two, a representative for the bank said. “Provincial markets are functioning well and as a result tenders are being reduced to only one a week,” which will be on Thursdays, bank spokesperson Rebecca Spence said by email. “This is consistent with the gradual reduction approach for other programs that were introduced by the Bank to support market functioning as these markets improved.” The bank is making the move when most provinces have completed their funding plans for the current fiscal year, which ends March 31.