Home > CFA L2, real-estate > Interest rates on bonds & mortgages

Interest rates on bonds & mortgages

Government of Canada (GOC) Bond Yields…slowly & surely creeping up…Notice the ‘U-shaped’ turnaround for terms longer than 1 year… noticeable in the 5yr term.

If you prefer the yield curve… which is a subset of the above data but presented differently

Fixed Mortgage Rates are based off of the respective GOC bond yields…(figure 1). The solid lines (right axis) in the figure below is the difference between the GOC bond yield and the corresponding term mortgage rate. This chart illustrates that mortgage rates don’t change as frequently as bond yields do. Look at the difference between the 3yr bond yield and the 3yr mortgage rate, it is sloping down or in other words hasn’t risen as much as the 3yr bond yields.

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  1. July 16, 2014 at 10:29 PM

    Interesting Read

  1. March 19, 2011 at 3:35 PM

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