Economic Indicators
·
TSX -179.89 to 11,094 closed at
its lowest level in 3 months, pressured by weak commodity
prices after stronger than expected U.S. economic data sparked a rally
in the greenback.
·
DOW -53.13 to 10,067
·
Dollar -.27c to 93.52cUS
·
Oil -$.75 to $72.89US per barrel.
·
Gold $-.60 to $1,083.USD per ounce
·
Canadian 5 yr
bond yields +.02 bps to 2.45. The
spread (based on the 5 yr rate published rate of 3.99%) is high within the comfort zone at 1.54%.
·
http://www.financialpost.com/markets/market-data/money-yields-can_us.html?tmp=yields-can_us
Therate of return on your bond, can be read through a yield curve, If the increase
in bond yield continues to go up, the spread will continue to
shrink and this could be a trigger for interest
rates to rise. Ideally lenders are looking for a spread between 1.35
and 1.55
Signs of recovery starting to sway the
skeptical
Looks like a V shaped recovery afterall
Paul Vieira, Financial Post
OTTAWA --
Despite all the angst in financial markets over sovereign debt and the populist
influence on banking reform proposals, the economies in the United States and Canada have chugged along the road
to recovery at a pace that's surprising even the most skeptical of analysts.
Data released Friday indicate U.S. GDP
grew in the fourth quarter, an estimated 5.7%, at its fastest pace in six
years. Meanwhile in Canada,
data show November growth was stronger than expected, at 0.4%, while revisions
to September and October figures indicate the economy was much stronger than
earlier thought.
Full article on my blog - www.mybcmortgage.ca (click on blog)
