Interest Rate Outlook
  2018 2019 2020
  Q1 Q2 Q3 Q4 Q1* Q2F Q3F Q4F Q1F Q2F Q3F Q4F
Fed Funds Target Rate  1.75 2.00 2.25 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50
3-mth T-Bill Rate  1.70 1.89 2.15 2.40 2.39 2.40 2.40 2.40 2.40 2.40 2.40 2.40
2-yr Govt. Bond Yield  2.27 2.52 2.81 2.48 2.45 2.50 2.50 2.50 2.50 2.50 2.50 2.50
5-yr Govt. Bond Yield  2.56 2.73 2.94 2.51 2.42 2.55 2.60 2.60 2.60 2.60 2.60 2.60
10-yr Govt. Bond Yield  2.74 2.85 3.05 2.69 2.61 2.70 2.75 2.85 2.85 2.85 2.85 2.85
30-yr Govt. Bond Yield  2.97 2.98 3.19 3.02 3.01 2.95 3.00 3.10 3.10 3.10 3.10 3.10
10-yr-2-yr Govt Spread 0.47 0.33 0.24 0.21 0.16 0.20 0.25 0.35 0.35 0.35 0.35 0.35
F: Forecast by TD Bank Group as at March 2019. All forecasts are end-of-period.
Source: Bloomberg, Federal Reserve, TD Economics. * Spot rate as at March 13, 2019 with the exception of policy rate.