Quebec Bonds Could Benefit as PQ Minority Limits Near-Term Policy Risks, Scotiabank Says
MT newswire2026/10/06 14:0810:08 AM EDT, 10/06/2026 (MT Newswires) -- Quebec provincial bonds should benefit from the Parti Quebecois' (PQ) mandate in the Canadian province, with the minority government outcome limiting near-term fiscal and policy risks, according to Scotiabank Economics. The PQ won 59 of 127 seats in Monday's election, falling five short of a majority with just 28% of the popular vote. The narrow mandate is likely to constrain the PQ's ability to advance its agenda and force it to rely on other parties to govern, wrote Scotiabank in a Tuesday note. Quebec minority governments have historically lasted around two years, adding to uncertainty over the PQ's ability to remain in power, said the bank. The result appears more a rejection of Quebec's other parties than a strong endorsement of the PQ, with 72% of voters backing other parties, added Scotiabank. Any shift to the left, including reliance on the nine-seat Quebec Solidaire, will warrant scrutiny of fiscal plans given the PQ's expensive campaign promises.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Netflix (NFLX.US) reportedly plans to lay off about 5% of its staff: The streaming giant faces growth pressure and trims its workforce ahead of earnings report.
According to reports, Netflix plans to lay off about 5% of its employees as early as next week.
Citi: Besent May "Slash" Long-term Bond Issuance Next Month, 20-year US Treasury Issuance Could Be Directly Canceled
Citi published a research report indicating that US Treasury Secretary Scott Besant is highly likely to reduce the issuance size of long-term US Treasury bonds, and may even completely cancel the issuance of 20-year Treasury bonds.
Rising energy prices intensify inflation concerns; US Treasury yields increase again, with the 10-year rising to 5.25%.
Persistently high energy prices have intensified market concerns about the inflation outlook and reinforced investor expectations of further interest rate hikes by the Federal Reserve. After experiencing significant volatility earlier this week, U.S. Treasury yields are edging back toward recent highs.
Crypto prices
More
