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Government of Canada Bond Yields
Meaning of Bond Yields
Bond Yields are the annual rate of return an investor can expect to receive from a bond. They are calculated by dividing the annual interest payment by the purchase price of the bond. Bond yields are important because they affect the interest rates on mortgages and other loans. When bond yields go up, interest rates on loans also go up. This can make it more expensive to borrow money, which can slow down the economy. Conversely, when bond yields go down, interest rates on loans also go down. This can make it cheaper to borrow money, which can stimulate the economy.
How to Access Bond Yield Data
The Government of Canada publishes bond yield data on its website. You can view or download the latest data for bond yields marketable bond average yields and selected benchmark bond yields. You can also view the latest data on the Government of Canadas purchases and holdings of Canadian Mortgage Bonds. This data can be used to track trends in bond yields and to make informed investment decisions.
Impact of Bond Yields on Mortgage Rates
There is a strong correlation between bond yields and mortgage rates. When bond yields go up, mortgage rates also go up. This is because banks and other lenders use bond yields as a benchmark when setting mortgage rates. For example, if the current 5-year bond yield is 1%, then we can expect 5-year fixed closed mortgage rates to be around 2-3%. This is because banks and other lenders typically add a spread of 1-2% to the bond yield when setting mortgage rates.
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