Filed under: Financial Update, Industry News, Mortgage Rates, Qualifying for A Mortgage Comment (0)
- TSX +57.60 to 12,966.49 (CP) after a day of light trading as investors were cautiously optimistic that Greece would pass an austerity bill necessary to prevent default on the country’s debt, and amid an announcement that global financial regulators plan to increase the capitalization requirements for leading lenders
- DOW +108.98 to 12,043.56 bounced back over 12,000 despite May data that showed Americans spent at the weakest pace in 20 months
- Dollar +.03c to 101.35c USD closed slightly higher against the U.S. dollar as investors traded cautiously ahead of a crucial vote on Greek austerity measures that could help contain the spread of a debt crisis to other European countries.
- Oil -$.55 to $90.61USD per barrel
- Gold -$4.50 to $1496.40 per ounce
- Canadian 5 yr bond yields markets +.01bps to 2.059. The spread (based on the 5 yr rate published rate of 3.79%) is above the comfort zone at 1.74. The spread based on the quick close of 3.59% is also high in the comfort zone at 1.54. Earlier in the day bond yields went down 4 bps to the mystical “2.00 threshold”. So technically they went up about 6 bps VERY quickly. Last time we hovered around these yields in November, rates dropped at all lenders, then subsequently increased by 20 bps within one week. So there could be some method by lenders in delaying any moves currently… http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en
The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. 1.40 and 1.60
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