Interest Rate Outlook
Interest Rates	2021				2022				2023
	Q1	Q2	Q3	Q4F	Q1F	Q2F	Q3F	Q4F	Q1F	Q2F	Q3F	Q4F
Canada
Overnight Target Rate	0.25	0.25	0.25	0.25	0.25	0.75	1.00	1.25	1.50	1.75	1.75	1.75
3-mth T-Bill Rate	0.09	0.15	0.12	0.05	0.43	0.83	1.10	1.38	1.63	1.75	1.75	1.75
2-yr Govt. Bond Yield	0.22	0.45	0.53	1.10	1.45	1.60	1.70	1.80	1.85	1.85	1.85	1.85
5-yr Govt. Bond Yield	0.99	0.97	1.11	1.40	1.65	1.80	1.90	1.95	1.95	1.95	1.95	1.95
10-yr Govt. Bond Yield	1.55	1.39	1.51	1.60	1.85	1.95	2.05	2.20	2.30	2.30	2.20	2.15
30-yr Govt. Bond Yield	1.98	1.84	1.99	1.90	2.15	2.25	2.35	2.50	2.60	2.60	2.50	2.45
10-yr-2-yr Govt Spread	1.33	0.94	0.98	0.50	0.40	0.35	0.35	0.40	0.45	0.45	0.35	0.30
U.S.
Fed Funds Target Rate	0.25	0.25	0.25	0.25	0.25	0.50	0.75	1.00	1.25	1.50	1.75	2.00
3-mth T-Bill Rate	0.03	0.05	0.04	0.05	0.13	0.55	0.80	1.05	1.30	1.55	1.75	1.90
2-yr Govt. Bond Yield	0.16	0.25	0.28	0.75	1.10	1.40	1.55	1.70	1.80	1.90	1.95	1.95
5-yr Govt. Bond Yield	0.92	0.87	0.98	1.35	1.55	1.75	1.85	1.95	2.00	2.05	2.05	2.05
10-yr Govt. Bond Yield	1.74	1.45	1.52	1.60	1.85	2.00	2.10	2.25	2.35	2.35	2.30	2.25
30-yr Govt. Bond Yield	2.41	2.06	2.08	1.90	2.15	2.30	2.40	2.55	2.65	2.65	2.60	2.55
10-yr-2-yr Govt Spread	1.58	1.20	1.24	0.85	0.75	0.60	0.55	0.55	0.55	0.45	0.35	0.30
Canada-U.S. Spreads
Can - U.S. T-Bill Spread	0.06	0.10	0.08	0.00	0.30	0.28	0.30	0.33	0.33	0.20	0.00	-0.15
Can - U.S. 10-Year Bond Spread	-0.19	-0.06	-0.01	0.00	0.00	-0.05	-0.05	-0.05	-0.05	-0.05	-0.10	-0.10
F: Forecast by TD Economics as at December 2021. All forecasts are end-of-period.
Source: Bloomberg, Bank of Canada, Federal Reserve, TD Economics.