Bond Yields Rising

5-year bonds yield yields have bounced quite a bit (44 basis) points from their March 17 multi-decade lows.  The 5-year bond is now at 3.18%--as of this writing. 

Yesterday, 10-year bond yields had the biggest 1-day increase since May 2004.

Given that fixed rates are based on bond yields, this move could slow the fall in fixed rates--for now at least.

Meanwhile, the Bank of Canada's Paul Jenkins is still talking rate cuts in the "near term."  Futures traders are pricing in a 1/4 point cut April 22.  However, Bloomberg's survey of 14 top economists puts the median projection at a 1/2% cut.

CIBC economist Benjamin Tal says, "Best-case scenario is no change over the next few months, with the real possibility of [the Bank of Canada] actually cutting rates. The risk of higher rates at this point is moderate at best."

TD economist Eric Lascelles is more dovish:  "There remains a lot of bad news out there, and plenty more rate cuts to come from central banks."