Market Commentary
Commercial Market Update
April 5, 2012 | Posted by: Francine Tracey
Commercial Bond Yields
Canada Mortgage Bond
Canada Housing 06/15/17*: 2.05%
Canada Housing 03/15/22: 2.74%
* denotes the interpolated rate
Select Government of Canada Bonds
CAN 4.00 06/01/17: 1.68%
CAN 3.25 06/01/22: 2.27%
GOC Bonds are for reference purposes only
First National Floating
Insured Cost of Funds
1.15%
Bank Prime Rate
3.00%
Posted Rate
1 Year: 3.20%
2 Year: 3.55%
3 Year: 3.95%
4 Year: 4.64%
5 Year: 5.24%
Market Commentary
Canadian inflation clocked in at a higher than expected 2.6% for January, led by food and fuel. It’s the second monthly increase in a row. The price of gasoline is up 2.6% from January and nearly 9% from a year ago. Even with the volatile elements of food and energy removed, core inflation stepped-up two notches to 2.3%.
In the U.S., new home sales in February fell for the third straight month. Prices, though, climbed to their highest level in 8 months. February sales dropped a seasonally adjusted 1.6% last month to 313,000 homes. The median price now stands at $233,700. The numbers suggest builders are anticipating higher demand in the coming months.