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RBC Shaves its Benchmark Rate by 10 Bps

RBC-BankAt long last we have a Big 6 Bank lowering advertised fixed rates.

RBC trimmed its 5-year posted rate to 5.34% today. It’s the first drop in posted rates in 16 weeks.

The move coincides with falling bond yields. The 5-year government yield has tumbled 30 bps in the last month, reducing fixed-rate funding costs throughout the industry.

Other banks will likely follow RBC’s lead and cut their own rates—with the exception of Scotiabank. Scotia’s 4.99% 5-year posted rate has undercut the other major banks for weeks.

Rob McLister, CMT