Bond Yields

With the recent inflation report on Tuesday, and the Federal Reserve meeting yesterday, bonds are taking it on the chin. Yields are up across most bonds, and the Canadian 5 year yield is higher than at any time since Sept 2007. Look for fixed rates to be adjusted higher this week ,and into next week by most major lenders.

Currently the Canadian 5 year yield is about 25 bps away from taking out 4.61%, which would be a 25 year high in rates. Tighten up the chin straps – its about to get rocky.