Bank Of Canada - Interest Rates

I would say that any Canadian listed stock which is inversely correlated with U.S. treasury bonds will likely have a sizeable Canadian bond component.

Rates in Canada are making similar moves as in the U.S. as we speak, and are bound to rise further.

At the same time, treasury bill yields should be declining at the short end of the curve as the housing asset price bubble collapses in Canada. Rates had recently been set by the central bank, though they had declined far enough at one point to consider the possiblity of a rate cut.

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

Once Canadians begin to see that this favours Canadian listed gold mining companies, and that they are truly beaten down as stocks, and that perhaps some of them actually make a good investment scenario, then investors will move into the mining stocks.

Since the majority of listed gold mining stocks are on Canadian exchanges in North America, this is an important factor in the pricing of stocks.

http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/

-F6