Canadian bond prices are going up and yields are falling due to that. Lenders are already on the move by cutting 3 years fixed rate mortgage rate. Long term fixed mortgage rates did not move much by this change yet.
Although some banks are providing under 3% rates on five years fixed already but that is nothing special compared to the drop in 3 years rate. There have been about 20 to 30 basis points drop in that rate.
Worries fuelled by the fear of Canadian housing downturn and renewed European problem are sending investors to buy bonds. This trend is likely to be short lived.