BOC T-Bill Yields

Treasury bill yields have plunged in Canada, which means that anyone carrying leverage will have to close their bets. Normally a sell-side brokers is leveraged over the money they raised by selling stock they don't own.

This would cause a very pressing environment should yields decline, equity markets decline, and gold prices rise. The fundamentals have improved for gold miners so radically based on the $CDN gold price, that making chronic sell side bets against gold miners is bound to be the most foolhardy bet in the markets.

Before long, the Bank Of Canada will be forced to lower policy rates to match T-bill yields. They raised policy rates to 1% in the hopes that this would fend off a further decline in rates. The Federal Reserve did exactly the same thing during the financial crisis brought on by the housing collapse and was eventually forced to lower policy rates.

http://www.bankofcanada.ca/rates/interest-rates/t-bill-yields/