Interest Rate Outlook

2020

2021

2022

Q1

Q2

Q3

Q4F

Q1F

Q2F

Q3F

Q4F

Q1F

Q2F

Q3F

Q4F

Fed Funds Target Rate

0.25

3-mth T-Bill Rate

0.11

0.16

0.10

2-yr Govt. Bond Yield

0.23

0.16

0.13

0.20

0.25

0.30

0.35

5-yr Govt. Bond Yield

0.37

0.29

0.28

0.35

0.45

0.55

0.65

0.80

0.90

0.95

1.05

1.15

10-yr Govt. Bond Yield

0.70

0.66

0.69

0.90

1.05

1.20

1.35

1.50

1.55

1.60

1.65

1.70

30-yr Govt. Bond Yield

1.35

1.41

1.46

1.60

1.75

1.85

1.95

2.05

2.10

2.15

2.20

2.25

10-yr-2-yr Govt Spread

0.47

0.36

0.56

0.70

0.85

1.00

1.15

1.30

1.35

F: Forecast by TD Economics as at December 2020. All forecasts are end-of-period.
Source: Bloomberg, Federal Reserve, TD Economics.