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 10yr Rate, the Interest Rate Spread and the Canadian Yield Curve
CLICK CHART TO ENLARGE
The chart above shows that in April 2019 the "Real" Bank of Canada 10 Year Treasury Yield (the rate less CPI - blue dotted plot) dropped further into the negative Nirp-O-Nomic rate zone as CPI went back up to 1.9% even though the nominal 10 year ticked up 13 beeps ... after 10.2 years of ZIRP & NIRP, the Bank of Canada remains content with it's disregard for savers.
But as noted in the chart above, has the real estate sector reached maximum speculation?
Gold has put in a five year base and continues to gyrate around the midpoint in that 5+ year plot.
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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