Tag Archive: bond yields

Bond yields have sunk this month. And it’s taken no time for skeptics to pronounce that inflation fears are therefore unfounded.

. One truth in economics is that mortgage rates typically follow inflation expectations, at least over time. That eventually poses a problem for borrowers, particularly after consumer prices take flight, like they have this year. U.S. core inflation, for example, recently jumped the most in four decades, 0.9% on a monthly basis. That “was well above what I and outside...

Fixed mortgage rates look like a runaway train. Thanks to Friday’s epic jobs report, the 5-year government bond yield, a leading indicator of fixed rates, closed the week above 1.00% for the first time in a year. That coincided with a barrage of new fixed-rate hikes at the big banks. Most major banks internally elevated their fixed rates this week...

The Mortgage Report: March 8 It was one year ago that Canada’s 5-year yield plunged to an all-time low of 0.27%. Since then, it has more than tripled — and the bond market hasn’t taken a breather. Investors keep dumping bonds and driving up yields. They fear things like: inflation excessive government borrowing and stimulus the end of government bond-buying...

Monday was a reprieve from surging rates in the bond market. Canada’s 5-year swap rate, a good lead indicator of fixed mortgage pricing, fell back towards earth after February’s parabolic surge. So far, four of the Big 6 banks have boosted fixed rates following that leap in funding costs. Here are some of the big names that jacked up fixed...

More banks raised their internal mortgage pricing this weekend, including Scotiabank. (See: Big Bank Mortgage Rates) Its move followed TD’s fixed-rate hike on Friday. Scotia, the largest bank in the mortgage broker channel, boosted multiple fixed rates, but actually lowered its variable rates. That seems to be the playbook now as banks try to entice people to float their mortgages...

If you have faith in Canada’s top banker, Bank of Canada chief Tiff Macklem, you needn’t worry about prime rate rising in 2021. Here’s what he said in a speech on Tuesday:‎With a complete recovery still a long way off, monetary policy will need to provide stimulus for a considerable period. We have committed to keeping our policy interest rate...

A scattering of lenders are starting to warn of impending rate increases. No surprise—given Canada’s 5-year bond yield, which drives fixed mortgage rates, hit a new relative high on Thursday. At 0.60%, it’s now the highest it’s been since April 9, 2020. When the 5-year yield was last at these levels, your typical discretionary 5-year fixed rate at a Big...

5-year fixed mortgage rates tend to shadow 5-year government yields. And for most of nine months, the 5-year yield has been locked in a 21-basis-point range, a range so tight it was practically inconceivable prior to COVID. And, while no one has ever seen a range like this in our lifetimes, ultimately the 5-year yield will break out. When that...

Lenders are not done sacrificing profit for market share. On Thursday, we hit yet another all-time low for 5-year fixed mortgage rates: 1.25%. That’s for default-insured mortgages only (like virtually all the lowest 5-year fixed rates). Insured or not, it’s a staggeringly low price for 5-year money. At 1.25%, this offer is just 31 basis points above the 5-year swap...