Canada added 79,100 jobs in November. Traders had expected only 15,000.
With rebounding yields, fixed mortgage rates will probably halt their drop, at least for the time being. As of now, discounted 5-year fixed rates are just under 4%—well below the approximate 10-year average of 5.36%.
The 5-year yield, which influences fixed mortgage rates, now stands at 2.53%. It seems to be putting in a floor in the 2.35% to 2.40% range. It may be tough to penetrate that floor in the near-term without weaker economic news, or some other economic shock.
The Bank of Canada holds its last interest rate meeting of the year on Tuesday. 19 of 19 economists polled by Bloomberg predict no change to the Bank’s 0.25% overnight rate.
Nevertheless, analysts will be watching to see if the BoC surprises the bond market with any optimistic outlooks.
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