Surging global bond yields could cause Canadian mortgage rates to climb
Long-term Canadian government bond yields have reached their highest levels in over 16 years, influenced by global inflation concerns and geopolitical tensions. This rise in yields is expected to impact Canadian mortgage rates, particularly the five-year fixed-rate mortgages. Economists suggest that while inflation data appears soft, the ongoing geopolitical issues may continue to drive borrowing costs higher.
- ▪Long-term Canadian government bond yields hit their highest levels in over 16 years due to a global bond sell-off.
- ▪The rise in yields is linked to inflation concerns and geopolitical uncertainty from the war in Iran.
- ▪Five-year fixed-rate mortgage rates are particularly affected, reaching their highest in nearly 22 months.
Opening excerpt (first ~120 words) tap to expand
Open this photo in gallery:A construction project in Vancouver in April, 2019. The rise in Canadian yields reflects global concerns over inflation and geopolitical uncertainty sparked by the war in Iran, economists say.JONATHAN HAYWARD/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountLong-term Canadian government bond yields touched their highest levels in more than 16 years on Tuesday, as a continuing global bond sell-off lifted borrowing costs worldwide.Economists said the rise in Canadian yields, which came despite Statistics Canada’s release of cooler-than-expected new inflation data, reflected global concerns over inflation and geopolitical uncertainty sparked by the war in Iran.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
Discussion
0 commentsMore from The Globe and Mail
