Housing and jobs may still prompt Bank of Canada rate hike
Filed Under Main Content · Tagged: Bank Canada, Bank Of Canada, Bank Of Canada Governor, Canada Post, Canadian Economy, Chief Economist, Desk, Divergence, Employment Data, Inflation Target, Jobs Bank, Jobs Canada, Mark Carney, Momentum, National Bank Financial, Overnight Rate, Policy Stance, Rate Hike, Slowdown, Strategist
Financial Post- The threat of a renewed slowdown in the United States and slowing momentum for the Canadian economy has the Bank of Canada nervous about its next move. But despite heightened expectations that the central bank will pause at its next meeting, potential housing regulation and the next round of employment data may influence the decision.
After two recent increases to its overnight rate, Bank of Canada governor Mark Carney on Thursday reiterated that “financial conditions remain exceptionally simulative.” He also warned that while Canada’s situation and the inflation target dictate a different policy stance than in the United States, “there is a limit to this divergence.”
Stéfane Marion, chief economist and strategist at National Bank Financial strongly agrees, but wonders what the actual of divergence is…
Housing and jobs may still prompt Bank of Canada rate hike | Trading Desk | Financial Post
Five-Year Yields Hit Highest Since October 2008: Canada Credit – BusinessWeek
Filed Under Main Content · Tagged: Balance Sheet, Bank Of Commerce, Bloomberg Canada, Bond Market, Bond Yields, Businessweek, Canada Credit, Canadian Imperial Bank, Canadian Imperial Bank Of Commerce, Cash Bonds, Declines, Fixed Income Market, Fixed Rate, Imperial Bank Of Commerce, Mortgage Regulations, Strategist, Swap Transactions, Swaps, Toronto Banks, Treasuries
Bloomberg- Canada’s five-year bond yields rose to the highest level since October 2008 as banks hedged mortgages and the nation’s fixed-income market caught up to declines in U.S. Treasuries.
Canada’s home buyers are stepping up borrowing as they seek to beat pending changes to mortgage regulations and increases in interest rates. Banks that issue mortgages protect their balance sheet by selling similar-maturity securities in the secondary bond market or by making swap transactions.
“Banks are hedging seasonal mortgage flows, which is weighing on the five-year sector,” said Mohammed Ahmed, a rates strategist at Canadian Imperial Bank of Commerce in Toronto. “Banks are receiving a fixed-rate asset and to hedge that, they typically pay the fixed-rate in swaps, or sell cash bonds…”
Five-Year Yields Hit Highest Since October 2008: Canada Credit – BusinessWeek
Contrasting sides of Canadian economy will likely be revealed
Filed Under Main Content · Tagged: Buoyancy, Canadian Economy, Economics, Expenditures, Housing Market, Market Economy, Motor Vehicle Sales, Second Consecutive Month, Strategist, Td Securities, Upward Momentum
Times Colonist- “Much of the upward momentum in spending should come from motor-vehicle sales, which is poised to post its second consecutive month of strong gains,” Millan Mulraine, economics strategist for TD Securities, said in a research note. “Additional support should come from expenditures on housing-related items on account of the buoyancy in Canadian housing-market activity…”
Contrasting sides of Canadian economy will likely be revealed
Housing starts drop unexpectedly
Filed Under Main Content · Tagged: Buoyancy, Hasn, Housing Market, Housing Starts, Positive Tone, Segment, Strategist, Td Securities, Times Colonist Victoria, Times Colonist Victoria Bc
Times Colonist, Victoria, BC – “This was a fairly disappointing report, and it suggests that the buoyancy that has been seen in the past two months in this segment of the housing market hasn’t gained much traction, clouding an otherwise positive tone in Canadian housing market activity,” said TD Securities economic strategist Millan Mulraine…
