Canada’s 5-year bond yield fell considerably today. It’s currently down 1/4% to 2.69%.
A 13.5% plunge in Canadian building permits (analysts expected just 1.5%)
More fear in the international credit markets (We were reminded this weekend about how the credit contagion is not just a North American problem – CNN Story)
Major weakness in the stock markets. The TSX had it’s biggest point loss ever this morning (1180 points) before recovering this afternoon. The Dow Jones Industrials fell below 10,000 for the first time in four years.
More flight to safety as doubt lingers over whether the U.S. rescue plan will help the credit markets fast enough, or enough period.
Asset rotation out of falling commodities.
Normally a drop in bond yields leads to lower fixed mortgage rates, but we’ll have to wait and see in this case. Up till now, lenders have been hesitant to cut rates given their tight margins and all the uncertainty in the market.
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