REAL 10 YEAR INTEREST RATE Bank of Canada 10 year Bond less CPI; also the TSX Real Estate, Energy and Gold Indexes. See also the Real Long Rate and the Interest Rate Spread and the Canadian Yield Curve
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The chart above shows that in June 2019 the "Real" Bank of Canada 10 Year Treasury Yield (the rate less CPI - blue dotted plot) dropped into bottom of the eight year negative Nirp-O-Nomic rate zone as CPI moved up to 2.4% and the nominal 10yr dropped 7 beeps. After 10.3 years of ZIRP & NIRP, the Bank of Canada remains content with it's disregard for savers.
The cash real estate sector is at new highs as Gold begins another run up towards the 2016 highs urged on by the USD in correction mode from it's recent rally.
Global currency turmoil as well as trade and war unknowns are coloring both sides of the debate on the ultimate direction of gold and interest rates.
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The 10 year bond yield is a bench mark for real estate mortgage rates. I have used it in my Vancouver Condo Case Study to measure risk against the buy and hold argument. |
Compare 2006-2008 to 2015-2017
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