The BoC published two new Staff Analytical Papers today.
The first, How Do Interest Rates Spur the Housing Market: Exploring Nonlinear Effects, is by Benjamin Straus, Stéphane Surprenant and Kerem Tuzcuoglu:
In this note we examine how monetary policy affects housing demand, supply and prices in Canada, and whether these effects vary with labour market conditions. Using state-dependent local projections identified with narrative monetary policy shocks, we find that lower interest rates have larger effects when unemployment is low. Easing boosts resales quickly, raises housing starts with a delay, and increases house prices persistently. Because demand tends to respond more strongly than supply, monetary policy appears unable to alleviate housing affordability pressures and may instead intensify them when labour market conditions are strong.
The second, 2025 Methods-of-Payment Survey Report: Cash in an Increasingly Digital and Mobile Economy, is by Marie-Hélène Felt, Saika Pacouloute and Angelika Welte:
The Methods-of-Payment (MOP) survey provides key insights into Canadians’ cash management and payment behaviour. In 2025, more than three in four adults report keeping cash on hand. Perceptions of cash remain positive and stable, and most Canadians do not plan to stop using it. At the same time, several indicators in the 2025 data suggest that patterns of cash use may be changing. Contactless card payments dominate in-person payments, with growing use of mobile devices.
…
Key perceptions that influence payment behaviour and choice relate to acceptance, ease of use, cost and security. Overall, trends in perceptions are stable and continue the patterns observed in recent years (Chart 4). In 2025, consumers considered cash to be the least costly and most secure payment method. By contrast, contactless card payments were seen as easier to use but less secure than cash or chip and PIN card payments. Cash also continued to be viewed very positively in terms of ease of use and acceptance. However, consumer perceptions of cash have gradually declined from the post-pandemic rebound levels observed in 2022.
I’m surprised that privacy did not warrant a mention a motivation for using cash!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3967 % | 2,661.3 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.3967 % | 5,011.6 |
| Floater | 5.43 % | 5.61 % | 31,935 | 14.44 | 3 | 0.3967 % | 2,888.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0079 % | 3,654.1 |
| SplitShare | 4.77 % | 4.93 % | 59,221 | 2.58 | 5 | -0.0079 % | 4,363.7 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0079 % | 3,404.7 |
| Perpetual-Premium | 5.63 % | 5.57 % | 54,371 | 6.76 | 12 | -0.0727 % | 3,081.6 |
| Perpetual-Discount | 5.54 % | 5.61 % | 39,757 | 14.47 | 21 | -0.5834 % | 3,403.7 |
| FixedReset Disc | 5.52 % | 5.84 % | 93,759 | 14.08 | 17 | -0.1709 % | 3,405.6 |
| Insurance Straight | 5.36 % | 5.43 % | 43,611 | 14.64 | 20 | -0.1861 % | 3,354.3 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1709 % | 4,158.2 |
| FixedReset Prem | 5.92 % | 4.49 % | 83,851 | 2.11 | 31 | -0.2393 % | 2,660.9 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1709 % | 3,481.2 |
| FixedReset Ins Non | 5.17 % | 4.45 % | 51,375 | 1.93 | 14 | 0.1717 % | 3,303.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BN.PF.G | FixedReset Prem | -4.27 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2030-07-01 Maturity Price : 25.00 Evaluated at bid price : 25.08 Bid-YTW : 5.83 % |
| BN.PR.M | Perpetual-Discount | -3.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 20.67 Evaluated at bid price : 20.67 Bid-YTW : 5.84 % |
| PWF.PR.K | Perpetual-Discount | -3.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 21.33 Evaluated at bid price : 21.60 Bid-YTW : 5.78 % |
| BN.PF.E | FixedReset Disc | -2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 23.15 Evaluated at bid price : 24.60 Bid-YTW : 5.79 % |
| PWF.PF.A | Perpetual-Discount | -2.07 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 5.60 % |
| FTS.PR.J | Perpetual-Discount | -1.94 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 21.98 Evaluated at bid price : 22.21 Bid-YTW : 5.36 % |
| FTS.PR.F | Perpetual-Discount | -1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 22.98 Evaluated at bid price : 23.25 Bid-YTW : 5.28 % |
| GWO.PR.Y | Insurance Straight | -1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 21.15 Evaluated at bid price : 21.15 Bid-YTW : 5.40 % |
| FTS.PR.M | FixedReset Prem | -1.44 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-12-01 Maturity Price : 25.00 Evaluated at bid price : 25.38 Bid-YTW : 4.96 % |
| ENB.PF.G | FixedReset Disc | -1.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 22.92 Evaluated at bid price : 24.15 Bid-YTW : 6.05 % |
| FTS.PR.G | FixedReset Prem | -1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 23.68 Evaluated at bid price : 25.30 Bid-YTW : 5.37 % |
| BN.PR.R | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 22.89 Evaluated at bid price : 24.25 Bid-YTW : 5.73 % |
| PWF.PR.E | Perpetual-Discount | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 24.16 Evaluated at bid price : 24.42 Bid-YTW : 5.68 % |
| GWO.PR.P | Insurance Straight | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 24.21 Evaluated at bid price : 24.50 Bid-YTW : 5.59 % |
| MIC.PR.A | Perpetual-Discount | -1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 22.83 Evaluated at bid price : 23.28 Bid-YTW : 5.87 % |
| BN.PF.C | Perpetual-Discount | -1.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 21.34 Evaluated at bid price : 21.61 Bid-YTW : 5.69 % |
| BN.PF.B | FixedReset Prem | 1.06 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-04-01 Maturity Price : 25.00 Evaluated at bid price : 25.72 Bid-YTW : 5.34 % |
| NA.PR.K | FixedReset Prem | 1.40 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-05-01 Maturity Price : 25.00 Evaluated at bid price : 28.15 Bid-YTW : 2.94 % |
| CU.PR.D | Perpetual-Discount | 1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 22.38 Evaluated at bid price : 22.64 Bid-YTW : 5.42 % |
| ENB.PR.Y | FixedReset Disc | 1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 22.70 Evaluated at bid price : 23.46 Bid-YTW : 5.94 % |
| MFC.PR.L | FixedReset Ins Non | 1.70 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-06-20 Maturity Price : 25.00 Evaluated at bid price : 25.68 Bid-YTW : 5.14 % |
| BN.PR.B | Floater | 1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 14.10 Evaluated at bid price : 14.10 Bid-YTW : 5.61 % |
| PWF.PR.R | Perpetual-Discount | 2.52 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 24.16 Evaluated at bid price : 24.41 Bid-YTW : 5.68 % |
| ENB.PF.C | FixedReset Disc | 2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 23.02 Evaluated at bid price : 24.26 Bid-YTW : 5.97 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BN.PF.F | FixedReset Prem | 55,200 | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-10-01 Maturity Price : 25.00 Evaluated at bid price : 25.26 Bid-YTW : 5.78 % |
| IFC.PR.C | FixedReset Ins Non | 42,121 | YTW SCENARIO Maturity Type : Call Maturity Date : 2026-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.13 Bid-YTW : 3.07 % |
| GWO.PR.P | Insurance Straight | 29,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 24.21 Evaluated at bid price : 24.50 Bid-YTW : 5.59 % |
| MFC.PR.N | FixedReset Ins Non | 26,900 | YTW SCENARIO Maturity Type : Call Maturity Date : 2030-03-20 Maturity Price : 25.00 Evaluated at bid price : 25.22 Bid-YTW : 5.20 % |
| TD.PF.A | FixedReset Prem | 14,725 | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.60 Bid-YTW : 4.27 % |
| BN.PR.B | Floater | 13,225 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-08-20 Maturity Price : 14.10 Evaluated at bid price : 14.10 Bid-YTW : 5.61 % |
| There were 2 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| BN.PF.G | FixedReset Prem | Quote: 25.08 – 26.24 Spot Rate : 1.1600 Average : 0.7656 YTW SCENARIO |
| BN.PR.M | Perpetual-Discount | Quote: 20.67 – 21.67 Spot Rate : 1.0000 Average : 0.6406 YTW SCENARIO |
| PWF.PR.K | Perpetual-Discount | Quote: 21.60 – 22.55 Spot Rate : 0.9500 Average : 0.5997 YTW SCENARIO |
| MFC.PR.I | FixedReset Ins Non | Quote: 26.01 – 27.00 Spot Rate : 0.9900 Average : 0.6790 YTW SCENARIO |
| BN.PR.B | Floater | Quote: 14.10 – 15.17 Spot Rate : 1.0700 Average : 0.7959 YTW SCENARIO |
| BN.PF.E | FixedReset Disc | Quote: 24.60 – 25.35 Spot Rate : 0.7500 Average : 0.4905 YTW SCENARIO |