Skip to main content

Featured

Bond Yields Are Nearing 5%: What It Means for Your Mortgage and HELOC

  Published September 11, 2026 Something is happening in the bond market this week that matters more to your wallet than the daily swings in the TSX. The yield on the 10-year US Treasury note closed in on 5% on Friday — 4.95% , its highest level since 2023 and approaching territory not seen since 2007 — after climbing 18 basis points in a single week. Canadian bond yields have followed the same path: the 10-year Government of Canada bond hit its highest level in over two years earlier this month, and the 5-year bond — the one that actually sets your fixed mortgage rate — has drifted up to roughly 3.41%, about a quarter-point higher than it was a month ago. If you're renewing a mortgage, shopping for a HELOC, or just trying to figure out whether now is the moment to lock in, here's what's actually going on and what it means for your payments. Why bond yields, not the Bank of Canada, are driving fixed rates right now It's a common mix-up: people watch the Bank of Canada...
Post a Comment
Read more

article

Labels

TSX gains on hopes of rate hike pause

 

The TSX closed slightly higher on Wednesday, as some sectors that benefit from lower interest rates rose amid signs that central banks may not tighten monetary policy further. The Canadian and U.S. economies added fewer jobs than expected in October, easing inflation fears and boosting bond prices. The TSX composite index ended up 3.5 points, or 0.02%, at 20,264.59.

The financials sector, which accounts for about a third of the TSX’s weight, gained 0.6%, as lower bond yields reduce borrowing costs and increase the value of future cash flows. The real estate sector, which is also sensitive to interest rates, climbed 1.2%, while the consumer discretionary sector, which includes retailers and auto parts makers, rose 0.9%

The energy sector, however, fell 1.1%, as oil prices dropped 2.4% to $80.51 a barrel, amid concerns about rising U.S. crude inventories and the impact of the COVID-19 pandemic on global demand. The materials sector, which includes miners and fertilizer producers, also declined 0.7%, as base metal and gold prices retreated.

For the week, the TSX was down 0.4%, as a jump in bond yields earlier in the week weighed on interest-rate sensitive sectors such as technology and utilities. The TSX is still up 18.6% year-to-date, outperforming the S&P 500, which is up 15.8%.

Labels:

Comments

Post a Comment