FIGURE 5-2
imageCanadian and U.S. Interest Rates This graph shows that “Canadian” interest rates are largely determined in the rest of the world. The risk premium plotted here is simply the excess of the Canadian bond yield over the U.S. Bond yield.
Source: Statistics Canada, Series 122487 and U.S. government securities 10-year bond rate www.federalreserve.gov/releases/h15/data.htm