Bank of Canada announced on Tuesday that, since the strains in the short-term provincial borrowing market had diminished significantly since March and the usage of its Provincial Money Market Purchase (PMMP) program had declined from its peak, it decided to amend the program.

"Effective July 27, 2020, the Bank will purchase up to 20% (previously up to 40%) of each accepted offering of directly issued provincial money market securities with terms to maturity of 12-months or less. The 20 percent limit may be adjusted if market conditions warrant."

In addition, the BoC also reduced the pace of acquisition of the Government of Canada treasury bills acquired at auction, citing improved conditions in short-term funding markets.

"Effective July 27, 2020, the Bank will reduce the amount it purchases at auction from 40 percent to 20 percent of tendered amounts, which is in line with average levels prior to the onset of the COVID-19 pandemic. The Bank may adjust its purchase percentage if market conditions warrant."