Tomorrow's Bank of Canada meeting effectively marks the one-year anniversary since the BoC started its rate cut campaign, one in which it's shaved a cool 225 basis points off floating-rate borrowing costs.

On the eve of the Bank of Canada's rate decision, yields climbed. Here's what moved them, and in which direction:

Fresh numbers suggest that more buyers may finally catch a break:

• National benchmark home prices are 18% off their peak
• Weekly paycheques have climbed 18% in 48 months
• Mortgage insurance rules are their loosest in years, and
• Mortgage rates are flirting with three-year lows.

Mortgage affordability is suddenly on a hot streak, with #GDS# ratios crashing to a 52-month low, according to MLN's calculations.

Indeed, MLN's data suggest the national average GDS ratio now sits at just 35.6% (see chart below). We're talking levels not seen since January 2021.

If you use today's leading contract rates instead of OSFI's #MQR#, GDS is even lower at 30.6%.

Better buying power should add more grease to the wheels, boost transaction flow and deliver welcome tidings for the mortgage sector. But when’ll this party kick off?
​​​

Here's what's shifted yields this Monday, and in which direction:

Last month, Japan's long-bond yields soared to unprecedented heights before temporarily retracing. Probably over 90% of Canadian mortgagors didn't even think twice about it, or once, for that matter.

Yet, Japan's debt challenges—while more extreme than most—mirror a global shift in the US$80 trillion government bond market. It may be setting up a future domino reaction that could be heading straight for everyone's wallets, Canadians included.

A mixed bag of economic data and trade headlines had yields in a slow drift lower on Friday.

Here's what jostled rates and in which direction:

Canada's economy sailed above expectations in the first quarter. The better-than-expected growth came with a big asterisk (it was driven by U.S. tariff front-running), but it was welcome nonetheless.

• Headline GDP rose 2.2% annualized in Q1 (est. 1.7% | prior [Q4] 2.1%)
• April GDP (advanced estimate) rose 0.1% m/m (est. -0.3% | prior 0.1%)
  ​​​

Here were the details: