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
CLICK CHART TO ENLARGE
The chart above shows that in March 2020 the "Real" Bank of Canada 10 Year Treasury Yield (the dotted blue plot, ie: the rate less CPI) is plumbing new lows at the bottom of the eight year negative Nirp-O-Nomic rate zone as CPI continued to tick up above the BoC 2% target at 2.2%.
The cash real estate sector (TSX Real Estate Index - solid green plot) continues its climb up the wall of worry as the TSX Gold Index works away at breaking up through the 2016 resistance highs even with the continuing USD/CAD 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.
|
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
|
