Canadian 5 yr bond yields -.01bps to 2.48- Four weeks ago it was 2.51. The spread, based on 5 yr rate of 4.49%, is at 2.01%.
Pressure on fixed 5 year: Down.
Financial Post - Markets
Lenders typically like to keep a spread of 1.70% to 1.80% between their fixed five year rates and current bond yields. If the bond yield increases then the spread will shrink putting upward pressure on mortgage interest rates. The reverse is also true. If bond yields decrease then the spread widens and there is downwards pressure on fixed rate mortgages.
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