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As someone who has none, I hope so; it would help slow down the crazy increase in house prices; bubble bubble away.
 

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The reason govt. is not raising rates is because it'll strengthen the Canadian $.
Until the US Fed raises rates too, they don't wanna raise rates.
They also realize that the Canadian RE market is in bubble territory and raising rates is the only way to control it.
So they are talking about increasing minimum down payments, etc.
 

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Watch the long bond market and if people feel inflation is a threat down the line they will demand more compensation for the bonds they purchase. The central bank cannot ignore the bond market for long if it starts to get out of hand.
 

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Watch the long bond market and if people feel inflation is a threat down the line they will demand more compensation for the bonds they purchase. The central bank cannot ignore the bond market for long if it starts to get out of hand.
Long bond yields don't seem to be factoring in large scale inflation.
The 10 year Canadas benchmark is yielding 3.6% and the Canadas 15 year is yielding 4.04%, and finally the Canadas 2033 is yielding 4.15% (source: CanadianFixedIncome.ca).
To me that doesn't look like high inflation is being expected.
What do you think?
 

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At the moment I also do not see high inflation haroldcrump as the bond market is telling us. If however the economy looks to be picking up and the future looks bright then probably all bonds will yields will head up as the economy is seen as heating up.

Of course the BOC will then move to raise rates and mortgage rates will head higher.
 
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