RBCWith bond yields falling more than 30 basis points in two weeks, RBC is the first to make a move.

The nation’s largest mortgage lender is cutting its 5-year fixed rates by 10 bps.

RBC’s posted 5-year fixed rate will be 5.34% effective tomorrow. Its “special offer” rate is moving to 4.19%.  (Actual market rates today are in the 3.89% range for well-qualified borrowers.)

The other banks shouldn’t be too far behind.

The banks last hiked fixed rates on Feb. 7 when the 5-year government bond yield was 2.71%. Today it’s down to 2.52%. (5-year fixed rates track bond yields.)

RBC also cut its 4-, 7- and 10-year fixed rates (see the release). With short rates falling precipitously, we’re surprised RBC didn’t lower its 1- to 3-year rates at the same time.