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 December 2019 the "Real" Bank of Canada 10 Year Treasury Yield (the dotted blue plot, ie: the rate less CPI) remained at the bottom of the eight year negative Nirp-O-Nomic rate zone as CPI popped from 1.9% to 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 hits resistance at the 2016 highs even with the USD/CAD breaking below the recent highs.
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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