"There's a very good chance long-term rates will head up before then," Jestin told the Post.
Yields won’t move in a straight line though. Jestin says, "Very clearly, we are in a transition period, bouncing along the bottom. It will be good news one day, bad news the next, over the next few months.”
Here’s a look at how 2-year government bond yields have led the Bank of Canada in the past. With few exceptions, yields started rising over a month before the Bank of Canada hiked its overnight target. The overnight target rate, in turn, influences prime rate. (Click to expand chart)