Investment Solutions for Municipalities
CIBC Economics: Interest Rate Forecasts
Canadian interest rates (end of period)
2021
2021
2022
2022
2022
2022
2023
2023
Variable (%)
8-Sep
Dec
Mar
Jun
Sep
Dec
Jun
Dec
Overnight Targe Rate
0.25
0.25
0.25
0.25
0.25
0.50
1.00
1.25
98-Day Treasury Bills
0.15
0.20
0.25
0.25
0.25
0.50
0.90
1.15
2-Year Gov't Bonds
10-Year Gov't Bonds
30-Year Gov't Bonds
Canada US T-Bill Spread
0.40
0.50
0.55
0.60
0.75
1.00
1.25
1.65
1.23
1.50
1.60
1.70
1.75
2.00
2.15
2.50
1.78
2.00
1.90
1.95
2.10
2.25
2.50
2.50
0.11
0.10
0.10
0.10
-0.10
0.15
0.00
-0.30
-
Canada US 10-Year Bond Spread
-0.14
-0.05
-0.10
-0.10
-0.25
-0.15
-0.20
0.00
Canada Yield Curve (10-Year - 2-Year)
0.82
1.00
1.05
1.10
1.00
1.00
0.90
0.85
US interest rates (end of period)
2021
2021
2022
2022
2022
2022
2023
2023
Variable (%)
8-Sep
Dec
Mar
Jun
Sep
Dec
Jun
Dec
Federal Funds Rate
0.125
0.125
0.125
0.125
0.375
0.375
0.875
1.375
91-Day Treasury Bills
0.04
0.10
0.15
0.15
0.35
0.35
0.90
1.45
2-Year Gov't Note
0.22
0.30
0.40
0.50
0.80
1.00
1.45
1.80
10-Year Gov't Note
1.37
1.55
1.70
1.80
2.00
2.15
2.35
2.50
30-Year Gov't Note
1.99
2.10
2.30
2.45
2.55
2.60
2.70
2.75
US Yield Curve (10-Year - 2 Year)
1.15
1.25
1.30
1.30
1.20
1.15
0.90
0.70
Source: CIBC Economics, as of 08-September-2021
CIBC
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