UK Causes Canadian Mortgage Rates to Rise? Rates Surge at the Fastest Pace in 3+ Months

#CanadianMortgageRates #CanadaMortgageRates #CanadaBondYields
Canada’s mortgage rates shot upward on Tuesday, with a crisis in the United Kingdom spreading to the markets in the United States and Canada.

As yields surged in the UK, investors in the U.S. and Canada demanded higher yields as well, with Canadian mortgage rates following soon thereafter.

The Bank of England has since intervened in the market, restarting another round of what is essentially quantitative easing - buying up an unlimited number of gilts (or UK Bonds) in order to keep prices low. Canadian bond yields have since retreated, though mortgage rates have not followed suit.

Links:Bond yields rise as 10-year U.S. yield hits 4%:

https://economictimes.indiatimes.com/markets/bonds/bond-yields-rise-as-10-year-u-s-yield-hits-4/articleshow/94497279.cms
CANADA FX DEBT-Surging bond yields spook investors, capping C$ gains:

https://www.nasdaq.com/articles/canada-fx-debt-surging-bond-yields-spook-investors-capping-c$-gains
2-year Treasury yield surges to 15-year high after U.K. gilts tank, weak auction:

https://www.marketwatch.com/story/treasury-yields-rise-to-new-cycle-highs-as-u-k-gilts-slump-11664188228
U.S. mortgage interest rates jump to 6.52%, highest since mid-2008:

https://www.saltwire.com/atlantic-canada/business/us-mortgage-interest-rates-jump-to-652-highest-since-mid-2008-100777666/
Bank of Canada increases policy interest rate by 75 basis points, continues quantitative tightening:

https://www.bankofcanada.ca/2022/09/fad-press-release-2022-09-07/
Larry Summers blasts UK tax cuts as ‘utterly irresponsible’ and warns of possible contagion:

https://www.cnbc.com/2022/09/27/larry-summers-blasts-uks-utterly-irresponsible-fiscal-policy.html
UK inflation rate unexpectedly dips to 9.9% as fuel prices decline:

https://www.cnbc.com/2022/09/14/uk-inflation-rate-unexpectedly-dips-to-9point9percent-as-fuel-prices-decline.html
UK government dishes out extensive tax cuts as country braces for recession:

https://www.cnbc.com/2022/09/23/uk-government-dishes-out-tax-cuts-as-country-braces-for-recession.html
Central banks unleash 350 basis points more of rate hikes in inflation fight:

https://www.reuters.com/markets/europe/central-banks-unleash-350-basis-points-more-rate-hikes-inflation-fight-2022-09-22/
UK Market Selloff Slams Gilts, Pound, Piling Pressure on BOE:

https://uk.finance.yahoo.com/news/truss-faces-dangers-uk-markets-125347283.html?guccounter=1
U.K. could trigger a global crisis as pound collapses while bond yields soar, Larry Summers says:

https://www.marketwatch.com/story/u-k-could-trigger-a-global-crisis-as-pound-collapses-while-bond-yields-soar-larry-summers-says-11664292688

Treasury 10-Year Yields Rise Above 4% for First Time Since 2010:

https://www.bnnbloomberg.ca/treasury-10-year-yields-rise-above-4-for-first-time-since-2010-1.1824711
Canada 5 Year Government Bond:

https://www.marketwatch.com/investing/bond/tmbmkca-05y?countrycode=bx
Dow closes up nearly 550 points in rebound from bear-market lows as bond yields fall after BOE intervention:

https://www.marketwatch.com/story/u-s-stock-futures-point-to-losing-streak-hitting-seven-after-treasury-yield-hits-4-11664356690
Bank of England to buy 65 billion pounds of UK bonds to stem rout:

https://www.reuters.com/markets/europe/bank-england-buy-long-dated-bonds-suspends-gilt-sales-2022-09-28/
BOE Pledges Unlimited Bond-Buying to Avert Imminent Gilts Crash:

https://www.bloomberg.com/news/articles/2022-09-28/boe-to-carry-out-purchases-of-long-dated-uk-bonds-to-calm-market

https://www.cnbc.com/2022/09/27/uk-lenders-halt-mortgage-deals-to-customers-after-market-chaos.html
BOE announces to carry out temporary purchases of long-dated UK government bonds:

https://www.forexlive.com/centralbank/boe-announces-to-carry-out-temporary-purchases-of-long-dated-uk-government-bonds-20220928/Mark Mitchell – Mortgage Broker London Ontario920 Commissioners Road East London, Ontario N5Z 3J1Phone: (519)860-2102 (Call or Text)[email protected] Lic: 10464Broker Lic: M16001479https://www.LondonOntarioMortgages.ca – Apply Online!!Youtube Channel: https://www.youtube.com/c/MarkMitchellMortgageBrokerLondonOntarioSubscribe NOW for more Mortgage/Real Estate/Financial News/Videos.Follow me on Social Media:Instagram - https://www.instagram.com/mortgagebrokerlondonontarioFacebook - https://www.facebook.com/londonontariomortgagesTwitter - https://twitter.com/londonmortgage1/LinkedIn - https://www.linkedin.com/in/mark-mitchell-london-s-mortgage-broker-197842123/TikTok - https://www.tiktok.com/@mortgagebrokerlondon?lang=enCommentary on this Channel should not be considered financial advice.