Canadian Banks speculated to stop rate cuts

February 16, 2008

If the market grapevine is to be believed, Canadian Banks are likely to stop rate cuts with immediate effect. This has had a very negative image on the Candian bond prices which have tanked based on the rumours of Canadian Banks planning to stop any further rate cuts. A leading fixed income strategist with a leading Candian brokerage house, said that the Bank of Canada wwill not cut rates any further when the next scheduled review on interest rates comes up next week. The ten year Government bond yield was pegged at 61 basis points above the short term 2 year bond yield. This caused Government securities to fall today which is the sixth day in succession.

Posted in Canadian Banks