Market Snapshot: Canadian Gov’t 5-Year Bond Yield

Canada’s Government Bond Yield for 5 Year Notes has declined from 1.39% to 1.26%. During the last 12 months, the 5-year bond yield remained relatively flat. By comparison, in November 2010, 5-year notes were yielding 2.48%. Yields remain at or near all-time lows that reflect ongoing global uncertainty, a trend which is reflected in yields on sovereign debt in other economies.

The Bank of Canada has shown no indication that it will raise rates until the currently risky economic outlook becomes clearer; likely in late 2013 at the earliest.

For investors looking to buy commercial real estate assets in Vancouver this points to debt financing rates at or near record low level heading into 2013.