2019

2020

2021

Q1

Q2

Q3*

Q4F

Q1F

Q2F

Q3F

Q4F

Q1F

Q2F

Q3F

Q4F

Fed Funds Target Rate

2.50

2.00

1.75

3-mth T-Bill Rate

2.35

2.08

1.89

1.60

1.73

2-yr Govt. Bond Yield

2.27

1.75

1.60

1.65

1.70

1.80

1.90

2.00

2.10

2.20

5-yr Govt. Bond Yield

2.23

1.76

1.66

1.60

1.70

1.75

1.85

1.95

2.05

2.15

2.25

10-yr Govt. Bond Yield

2.41

2.00

1.79

1.70

1.80

1.90

2.00

2.10

2.20

2.30

2.40

30-yr Govt. Bond Yield

2.81

2.52

2.24

2.25

2.30

2.40

2.50

2.60

2.65

2.70

2.75

10-yr-2-yr Govt Spread

0.14

0.25

0.04

0.10

0.04

0.20

F: Forecast by TD Bank Group as at September 2019. All forecasts are end-of-period.
Source: Bloomberg, Federal Reserve, TD Economics. * Spot rates as at September 18, 2019 with the exception of policy rate.

Interest Rate Outlook
	2019				2020				2021
	Q1	Q2	Q3*	Q4F	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	1.75	1.75
3-mth T-Bill Rate	2.35	2.08	1.89	1.60	1.60	1.60	1.60	1.60	1.60	1.60	1.60	1.73
2-yr Govt. Bond Yield	2.27	1.75	1.75	1.60	1.60	1.65	1.70	1.80	1.90	2.00	2.10	2.20
5-yr Govt. Bond Yield	2.23	1.76	1.66	1.60	1.60	1.70	1.75	1.85	1.95	2.05	2.15	2.25
10-yr Govt. Bond Yield	2.41	2.00	1.79	1.70	1.70	1.80	1.90	2.00	2.10	2.20	2.30	2.40
30-yr Govt. Bond Yield	2.81	2.52	2.24	2.25	2.25	2.30	2.40	2.50	2.60	2.65	2.70	2.75
10-yr-2-yr Govt Spread	0.14	0.25	0.04	0.10	0.10	0.04	0.20	0.20	0.20	0.20	0.20	0.20
F: Forecast by TD Bank Group as at September 2019. All forecasts are end-of-period. Source: Bloomberg, Federal Reserve, TD Economics. * Spot rates as at September 18, 2019 with the exception of policy rate.