2-year bond yields have been ramping up. They hit a new 7-month high on Thursday.
On Wednesday they rose 13 basis points, the biggest 1-day jump since last October.
It wouldn’t be a shock to see 2-year fixed mortgage rates taking the up escalator as well.
That’s too bad because 2-year mortgages have been a nice alternative to variables and 1-year terms. They’re slightly more expensive but offer more protection from rising rates. Moreover, 2-year mortgages don’t lock you into inflated variable-rate premiums for 4-5 years.
(Chart data courtesy of the Bank of Canada)
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Sidebar: Action Economics says “anxiety is building that the BoC may be forced to tighten earlier than expected, with March BAX futures nearly fully discounting two 0.25% rate hikes.”
Last modified: April 28, 2014
