2019

2020

2021

Q1

Q2

Q3

Q4*

Q1F

Q2F

Q3F

Q4F

Q1F

Q2F

Q3F

Q4F

Fed Funds Target Rate

2.50

2.00

1.75

2.00

2.25

3-mth T-Bill Rate

2.35

2.08

1.84

1.53

1.55

1.68

1.93

2.17

2-yr Govt. Bond Yield

2.27

1.75

1.63

1.64

1.70

1.75

1.80

1.90

2.00

2.10

2.20

2.30

5-yr Govt. Bond Yield

2.23

1.76

1.55

1.71

1.75

1.80

1.90

2.00

2.10

2.20

2.30

2.40

10-yr Govt. Bond Yield

2.41

2.00

1.68

1.88

1.95

2.00

2.10

2.20

2.30

2.40

2.50

2.60

30-yr Govt. Bond Yield

2.81

2.52

2.12

2.30

2.35

2.40

2.50

2.60

2.70

2.75

2.80

2.85

10-yr-2-yr Govt Spread

0.14

0.25

0.05

0.24

0.25

0.24

0.30

F: Forecast by TD Economics as at December 2019. All forecasts are end-of-period.
Source: Bloomberg, Federal Reserve, TD Economics. *Spot rates as at December 16, 2019 with the exception of policy rate.

Interest Rate Outlook
	2019				2020				2021
	Q1	Q2	Q3	Q4*	Q1F	Q2F	Q3F	Q4F	Q1F	Q2F	Q3F	Q4F
Fed Funds Target Rate	2.50	2.50	2.00	1.75	1.75	1.75	1.75	1.75	1.75	1.75	2.00	2.25
3-mth T-Bill Rate	2.35	2.08	1.84	1.53	1.55	1.55	1.55	1.55	1.55	1.68	1.93	2.17
2-yr Govt. Bond Yield	2.27	1.75	1.63	1.64	1.70	1.75	1.80	1.90	2.00	2.10	2.20	2.30
5-yr Govt. Bond Yield	2.23	1.76	1.55	1.71	1.75	1.80	1.90	2.00	2.10	2.20	2.30	2.40
10-yr Govt. Bond Yield	2.41	2.00	1.68	1.88	1.95	2.00	2.10	2.20	2.30	2.40	2.50	2.60
30-yr Govt. Bond Yield	2.81	2.52	2.12	2.30	2.35	2.40	2.50	2.60	2.70	2.75	2.80	2.85
10-yr-2-yr Govt Spread	0.14	0.25	0.05	0.24	0.25	0.24	0.30	0.30	0.30	0.30	0.30	0.30
F: Forecast by TD Economics as at December 2019. All forecasts are end-of-period. Source: Bloomberg, Federal Reserve, TD Economics. *Spot rates as at December 16, 2019 with the exception of policy rate.