Commercial Mortgage and Bond Rates

February 20, 2012 | Posted by: Francine Tracey

Commercial Bond Yields

Canada Mortgage Bond

Canada Housing 06/15/17*: 1.82%
Canada Housing 03/15/22: 2.55%
* denotes interpolated rate

Select Government of Canada Bonds
CAN 4.00 06/01/17: 1.50%
CAN 3.25 06/01/22: 2.16%
GOC Bonds are for reference purposes only

First National Floating
Insured Cost of Funds
1.14%

Bank Prime Rate
3.00%

Posted Rate
1 Year: 3.50%
2 Year: 3.55%
3 Year: 3.95%
4 Year: 4.64%
5 Year: 5.14%

Market Commentary

Yields are up and so is Canada’s inflation rate. The CPI was pushed higher in January by food and energy prices. Last month’s consumer prices climbed 2.5% Y/Y, a slight increase from the 2.3% Y/Y posted in December. Core inflation – excluding food and energy – came in at 1.6% Y/Y in January, again, a slight increase from 1.3% Y/Y in December. Increased car prices are cited for the increase.

Inflation in the U.S. increased a seasonally adjusted 0.2% in January, for a 12 month, unadjusted rate of 2.9%. Core inflation for 12 months stands at 2.3%.

Initial jobless claims in the U.S. dropped to a new cyclical low of 348K in the second week of February, nearly 20K below expectations.

And Canada’s international securities transactions report indicates an on-going appetite for Canadian assets. In December foreigners acquired $4.7B worth of securities, including $2.1B in bonds. Foreigners purchased a total of $95.6B worth of Canadian securities in 2011, down from $117.4B in 2010.

Next week, look forward to Canadian Retail and wholesale trade numbers, U.S. existing home sales , Canadian Q4 corporate profits and American consumer sentiment.

Source - First National Commercial Financing

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