Economic growth slowing after fast start to recovery, Bank of Canada says Carney is cautioning markets not to be so sure Canada’s central bank will raise its key interest rates in a matter of weeks.
- TSX +26.31
- DOW +9.37
- Dollar -.08c to 100.00cUS
- Oil +$.02 to $83.70US per barrel.
- Gold +$5.90 to $1,142.30 USD per ounce
- Canadian 5 yr bond yields -.04 to 3.16. The spread (based on the NEW MERIX 5 yr rate published rate of 4.64%) is centred in the comfort zone at 1.48
The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Currently lenders are looking for a spread between 1.35 and 1.60.