Providing Thoughtful Analysis on the Housing Market
Friday, December 27, 2013
Canadian and US Bond Yields
The perpetual threat of rising bond yields that (one assumes) translate to higher mortgage rates are back in the news. Well, rising US yields are in the press, anyways, and we all know that Canadian yields are tightly linked to US bond yields.
The graph below shows the linear spread between Canadian and US 10 year bond yields (ie the Canadian 10Y bond yield minus the US 10Y bond yield) since 1955:
When we say Canadian and US yields track, it is in the statistical context.