Canada's mortgage market eagerly awaits the final verdict on whether regulators will replace the federal mortgage stress test (a.k.a., "MQR") with their new loan-to-income (LTI) test. On Tuesday, MLN got new intel on this from our banking gatekeepers. The regulator told us:

The Finance Department and Bank of Canada better keep those foreigners happy. That's the takeaway from a National Bank report that showed foreign investors now control ~36% of our federal debt. The long-term average is 23%. Foreign investors bought a record $91 billion worth of Canadian IOUs (bonds

It was a cautious day in the bond market, but trade vibes got suddenly more chipper. Here's what moved Canada's 5-year yield, and in which direction:

For anyone picking a mortgage term based on market-projected forward rates and today's best offers *, floating looks about as appealing as a tax audit. The implied upside (i.e., the probability of maximizing savings with a variable) is too limited. As students of interest rates are aware, however,