Washington's political establishment is nearing a resolution on the debt ceiling fiasco. With a bit of last-minute horse-trading, Congress should be able to lift the debt limit by the Treasury Department's revised June 5 deadline.
That should hopefully remove some upward pressure on U.S. yields, which have combined with CPI concerns to take Canadian fixed rates higher.
"The bulk of the recent back-up in Treasury yields has been in real yields, not in the implied inflation premium," BMO said Friday. Translated into English, this suggests that U.S. debt and spending concerns have been significant rate drivers as of late.
You don't have access to this post on MortgageLogic.news at the moment, but if you upgrade your account you'll be able to see the whole thing, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.
Comments
Sign in or become a MortgageLogic.news member to read and leave comments.
Just enter your email below to get a log in link.