The bond rates have been creepin upwards - currently government of Canada bond rates are 4.213 for 5 years and 4.24% for 6 months - we have a virtually flat curve - with a little upward bias in the 1 year term. With mortgage rates around 5.14-5.25 this is a very tight margin when compared to the bonds. Normally you would think rates will move up.
but the canadian dollar is at 91 cents - and moving towards parity...therefore the bank of canada is not likely to increase rates - I suspect we will see short term rates drop and long term rates increase - thus moving the market back to a normal bias...time will tell...lets wait and see
greygoose out.
p.s. thanks to everyone who called about joannes ankle - she is resting on the couch -and if i dont have a heart attack...we will do just fine.
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