Canadian Bond Watch - January 13 2010

As you know by now, fixed interest rates are directly correlated with bond yields. The current Canadian bond yields show that bond yields have come back down after a 30 basis point run up over the past four or five weeks.

There had been a lot of speculation that the US and Canadian job reports would indicate better growth, which meant a likely scenario of rate increases. Thankfully for home buyers, that didn’t materialize, so we didn’t see any massive rate increases – with one exception.

In fact, today I received a notification from Street Capital that they had reduced rates. Go figure.

In any case, there may be some short-term ups and downs over the next few weeks depending on the economic news of the day…but my prediction for higher rates over the next 6-8 months still holds.