Canadian Interest Rates and Market Review – In 30 Seconds

Information about Canadian interest rates, Canadian mortgage rates and the overall health of the Canadian dollar can help you to make important pocketbook decisions, so I’m going to periodically provide you with economic data as these figures become available. 

Decisions such as when or whether you want to consider a home refinance loan or making big ticket purchases with cash or credit could be impacted by fluctuating Canadian interest rates and policy decisions made by our leaders.

On March 4, The Bank of Canada dropped the Canadian interest rates to 3.5 percent.  This drop, from 4 percent represents a half a percentage point drop and was an attempt to prevent American economic woes from negatively impacting the Canadian economy.  Evidence is mounting that America’s stagnant economy is beginning to affect the economic outlook in Canada.

Canadian currency fell 0.3 percent from 98.78 to 99.08 cents to the U.S. Dollar.  This action came on the heels of the jobs report showing that our economy created more jobs than originally forecast.  The currency very briefly flirted with 97 cents, topping out at 97.45, which was the best showing since February 28.  One Canadian dollar now buys $1.0093US.

Canadian government issued bond yields fell again on the two year bond, which is due in December ‘09, which represents a decline of 21 basis points – 2.57 percent is the lowest level since April 2004.  If you’re looking at the price of the 4.25 percent bond; it climbed 32 cents to $102.81.

The yield on the 10 year government bond is quickly approaching record low performance; Bloomberg first began compiling this data in 1989.  The figures aren’t overly encouraging: the yield fell 0.08 percentage points (8 basis points), to 3.56.  The 4 percent security price, which is due in June of 2017 climbed 61 cents – to $103.43.

There you have it. Canadian dollar, Canadian mortgage rates and Canadian interest rates all summed up in 30 seconds.  If you have any questions about any of this information, please don’t hesitate to email me directly.

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