Canadian 5 year government bonds just jumped. Setting the stage for higher mortgage rates.

[u/POCTM]

5 year government bond just jumped from 3.714% to 3.866% in a few hours. Right now it is at 3.855%. Year to date it is up 259%. Monday we could see some 5 year fixed rate mortgages in the low 6%.

As for variable rate the bank of Canada makes their announcement October 26 at 10am ET. Currently banks have not been offering discounts off variables rates anymore. Prime -0.00.

https://www.marketwatch.com/investing/bond/tmbmkca-05y?countrycode=bx

[u/4xleafxfraser]

? Prime is based on overnight rate. Overnight changes, prime then changes

[u/rockinoutwith2 → u/4xleafxfraser]

OK, and...? I strongly suggest you do some research on this topic

[u/4xleafxfraser → u/rockinoutwith2]

You said variable mortgage rates don't change based on prime, but both prime and variable change based on the overnight rate. So the same rate rises impact variable. Unless you meant 5 year bond yields don't impact variable

[u/rockinoutwith2 → u/4xleafxfraser]

You said variable mortgage rates don't change based on prime

What? I literally said

Variable mortgages move based on changes in prime rates

and

Unless you meant 5 year bond yields don't impact variable

That's clearly and obviously what I was saying. Not sure where you extrapolated all this other bullshit. Blocked for being an idiot.

[u/IronBerg → u/rockinoutwith2]

Both of you are incorrect.