top of page
  • RMG Wordsmith

Latest News - Weekly Government Bond Expected to be Reduced - October 2021

Latest News - October 27th, 2021

Governor Tiff Macklem is expected to reduce weekly government bond purchases by one-half on Wednesday to $1 billion (US$809 million). That will mark the fourth time over the past 12 months the central bank has rolled back a program that has poured hundreds of billions into the financial system since the start of the COVID-19 pandemic. By doing so, they will push up the bond yield, thus putting pressure on fixed rates to increase. Keep an eye on the bond yield, and remember the banks need a spread of 110 to 130 bps to remain profitable.

Current 5 Year Bond Yield - 1.441

Current 5 Year Insured Rate - 2.39 (less than 100 bps spread)

If history repeats itself, the 5-year rate should be in the area of 2.60% to 2.70%.

If you are starting the process of buying your first home and you're needing guidance or help understanding the process, feel free to contact us with any other questions you may have; we would love to help make your dreams a reality!

7 views0 comments

Recent Posts

See All
bottom of page