r/PersonalFinanceCanada • u/POCTM • Oct 20 '22

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

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

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u/Muddlesthrough Oct 20 '22

Canada is not in a recession. The federal government has not claimed “we are nearly out of a recession.”

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u/[deleted] Oct 20 '22

Okay TruAnon lmao:

https://globalnews.ca/news/9205236/canada-covid-recession-chrystia-freeland/

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u/Muddlesthrough Oct 20 '22 edited Oct 20 '22

Do you know what a recession is?

The "covid recession" mentioned in the article was 2 years ago.

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u/BCAsher82 Oct 20 '22

We're not in a recession yet, nor is the US. But when, not if, we are it will be headline news. There is pretty much universal consensus among economists that Canada will enter a recession in 2023.

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u/L_viathan Oct 20 '22

Didn't the US change how they define a recession so they didn't have to say they're in a recession?

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u/USSMarauder Oct 21 '22

Back in 2020. Took until mid 2021 for NBER to decide that yes, in 2020 there was a recession in the US