5 Year Canadian Bond Yields Drop 16 % For The Week

As investors scramble for security amidst elevated fears of European default, long-term bond yields are free falling across the globe – especially on the home front. Government of Canada 5 Year Bond Yields drop 14.39 per cent today, following a month of already record lows.

Seeking Out Safe Havens

The investing climate right now is all about safety. Closing on a week that saw a nervous Spain heavily investing in German safe haven bonds, it appears the flow has returned to North America, in addition to the U.S., British, German and Swedish 10-year bond yields also all hitting record lows. As interest rates in European countries steadily increase to heightening fears of default risk and yields drain in North America, could yields dip even lower? Time will tell.

 

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Mortgage News / Mortgages

One thought on “5 Year Canadian Bond Yields Drop 16 % For The Week

  1. Fixed rates are usually much, much heihgr than flexible. I’m not sure your HELOC is best spent on your mortgage, especially considering that you guys have the lovely MID thing going on. I’m assuming that your income bears your mortgage okay already. You are effectively mortgage cycling almost, you’ll own your house but still have a net worth problem doing that. It’s sort of an eggs in one basket technique. I’d be inclined to diversify a bit, but you should get a second opinion. It just seems rushing to effectively get rid of a tax write off (mortgage interest) when you may not need to, may not be the best thing at all.How low can you fix your rates? What will your income bear? Your rate increase tolerances? If we’re only talking about a few thousand per year, is the headache even worth it to you? Lots of questions to consider.Oh that was presumptuous. The US lets you write off mortgage interest, Canadians have to do the fancy Smith Manoeuver to get the same effective thing going on.

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