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Last week was a relatively quiet one for the factors that affect Canadian mortgage rates.
Our federal budget was dubbed a “non-budget” because its content was more benign than many had feared, with our capital-gains and principal-residence tax exemptions left intact, at least for now.
Government of Canada (GoC) bond yields continued to drop in sympathy with their U.S. counterparts, as investors weigh the likelihood of Trump-led stimulus programs, tax cuts and deregulation against the likelihood of new protectionist trade policies, immigration bans and political infighting. The bond market’s knee-jerk reaction to President Trump’s win always seemed overblown to me, and the recent drop in U.S. bond yields is a sign of investors recalibrating their initial post-election forecasts.