Bond rates have increased 37 points in the month of May. Originators should prepare for higher interest rates.

RBC Capital Markets is now predicting no rate cut by the Bank of Canada on June 10, citing, higher commodity prices, higher currency, and rising inflation since the last rate cut on April 22. Rates have already started to increase in the Australian market, which typically trends ahead of the Canadian market.

TSX -111.45

· Dow +52.19

· Dollar +.08c to $101.10

· Oil -4.41 to $126.62US per barrel

· Gold -23.30US to $881.70US

Bond Rates: http://www.bankofcanada.ca/en/rates/bonds.html