Quebec’s Independence Talk Is Making Bond Investors Nervous

Quebec’s main separatist political party is on the rise, and it’s turning some investors away from the province’s bonds.

Thirty-year Quebec bonds are trading around six basis points wider than similar debt from Ontario, a spread not seen in almost a decade, according to data compiled by Bloomberg. The higher risk premium suggests heightened concern about political stability in the French-speaking province, which accounts for more than a fifth of Canada’s population.

Paul St-Pierre Plamondon, the leader of the Parti Québécois, has promised a referendum on independence from Canada.

Photographer: Andrej Ivanov/Bloomberg

Some of the widening has occurred recently as the separatist Parti Québécois consolidates its lead in public opinion polls with less than a year to go ...