REAL 10 YEAR INTEREST RATE Bank of Canada 10 year Bond less CPI; also the TSX Real Estate, Energy and Gold Indexes
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The chart above shows that in June 2018 the "Real" Bank of Canada 10 Year Treasury Yield (the rate less CPI - blue dotted plot) continued ticking down into the Nirp-O-Nomic rate zone.
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Gold has put in a nearly five year base and its summer of 2016 breakout is keeping it aloft in the upper end of its channel.
Global currency turmoil, pressure from rising rates 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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So far NIRP & ZIRP have failed to inflate household earnings which in Canada look to have peaked recently. 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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