In 60 words or less my Realtor friends in Mission and Maple Ridge: The headline report for today is Canadian CPI for September. It came in with a 0.2% increase over August for an annual rate of 1.1%. Core inflation clocked-in with an annual rate of 1.3%. Both numbers were generally in line with expectations but are well below Bank of Canada forecasts.
Good growth in China appears to be giving the markets a boost. The Chinese economy grew by 7.8% in the third quarter. In North America equities started the day higher across the board.
Bond yields are down 5 - 6 bps. That means so are borrowing mortgage rates!
The Canadian economy created 11,900 jobs in September, beating expectations. All of the jobs were full time in the private sector. The unemployment rate dropped to 6.9%, but that appears to be the result of people -- mainly youth -- giving up the search for work.
U.S. retail sales crept up slightly in September according to some independent sources. The official government figures remain under wraps because of the shutdown in Washington.
North American markets were up in the early going, continuing yesterday's rally. Investors appear encouraged by the on going budget talks in the U.S.
Commercial Bond Yields
Canada Mortgage Bond
Canada Housing 12/15/18: 2.18%
Canada Housing 09/15/23: 3.06%
Canada Housing 06/15/24*: 3.17%
*denotes interpolated rate
Select Government of Canada Bonds
CAN 4.25 06/01/18: 1.77%
CAN 2.50 06/01/24: 2.64%
GOC Bonds are for reference purposes only
First National Floating Insured Cost of Funds
Bank Prime Rate
1 Year: 3.09%
2 Year: 3.14%
3 Year: 3.95%
4 Year: 4.74%
5 Year: 5.34%