Bond Yields & Interest Rates

Expect to see 12-18 months of yo-yo markets (the TSX, Dow, and subsequently, the Bond Market) in which we will see surges and retreats (as we have seen over the past month)

· The US will take longer to recover than initial estimates

· The economies to watch as the fastest growing nations are from BRIC (Brazil, Russia, India, and China)

· Rates will stay relatively low as bonds continue to rise

· “Quantitative Easing” or the printing of Government Bonds and T-bills (aka money) will be watched very closely to monitor the effects of this practice on inflation

· The other main factors affecting the economy (and in turn rates) are:

o Oil prices

o Bond prices/yields

o Large market influences (such as GM going bankrupt)

o And the jobless numbers, the actual number of Canadians out of work