Quote:
Originally Posted by Rerun
I see... I didn't realize that. What would cause the 5 yr bond rate to go up in the next 12 months?
One question though... why did all the 5 year rates drop a day or so after the Bank of Canada dropped its prime rate? It does seem like there is some correlation there.
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There definitely is some correlation, but we are also talking about an environment in which inflation is 0% and where the banks are under a lot of pressure to assist in the stabilization of the economy. It is interesting to note that 7 year mortgage rates are actually higher than when I took out my mortgage in 2005.