The stock and commodity market collapses have people running for cover in safe government treasuries
With our sputtering economy, the Bank of Canada seems poised to cut rates again in December
Today the 5-year bond yield is a bit higher at 2.58%. The spread between 5-year posted mortgage rates and bonds yields, however, is now seemingly absurd at 4.62%. The norm is 2.50%.
Then again, posted mortgage rates have remained stubbornly high as of late. For that reason they seem to be a less telling indicator of market rates than they once were. BMO’s recent move to cut its mortgage discount instead of lowering its posted rate is case in point.