Market Commentary
July 13, 2012 - Commercial Market Update
July 13, 2012 | Posted by: Francine Tracey
Commercial Bond Yields
Canada Mortgage Bond
Canada Housing 12/15/17*:1.62%
Canada Housing 12/15/22*:2.22%
* denotes the interpolated rate
Select Government of Canada Bonds
CAN 4.00 06/01/17: 1.20%
CAN 2.75 06/01/22: 1.62%
GOC Bonds are for reference purposes only
First National Floating
Insured Cost of Funds
1.17%
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
Yields remain low and flat while investors appear to be waiting for some good news.
That news didn’t come from China. The world’s second-biggest economy has slowed for the 6th consecutive quarter. Growth in China is now pegged at 7.6%. That’s one notch above the government’s target but below the 8% level that triggered action in the past. The People’s Bank cut its benchmark interest rate last week, for the second time in a month.
There is no Canadian data today.
In the U.S. the Producer Price Index rose 0.1% in June, led by consumer goods such as appliances and light trucks. The modest increase is seen as a sign that inflation is not a threat.
And the University of Michigan’s initial read on consumer confidence for July slumped to its lowest level in 6 months, 72.0.
Source - First National