What if the Bank of Canada stays restrictive longer and intensifies the mortgage renewal shock?
The Bank of Canada keeps rates restrictive longer than markets expect, intensifying the 2025–26 mortgage-renewal payment shock.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a risk-off shock. The Bank of Canada keeps rates restrictive longer than markets expect, intensifying the 2025–26 mortgage-renewal payment shock. The trigger decomposes into signed root‑shocks — Consumer spending ▼ · Fed policy path ▲ · Mortgage rates ▲ · Real yields ▲ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | Tech sector XLK 📈 chart | Equity | ▼ -0.8% hist -0.73–-0.12% · other way -0.09% (n=12) |
| 2 | Homebuilders XHB 📈 chart | Equity | ▼ -0.7% hist -1.17–+0.08% · other way -2.4% (n=12) |
| 3 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▼ -0.7% hist -0.71–-0.1% · other way -0.49% (n=12) |
| 4 | Gold XAUon Hyperliquid 📈 chart | Commodity | ▼ -0.7% hist -0.51–+0.23% · other way -0.08% (n=12) |
| 5 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▼ -0.7% hist -5.35–+0.96% · other way +1.97% (n=12) |
| 6 | 30y Treasury yield DGS30 📈 chart | Rate | ▲ +6bp hist -0.76–+10.88% · other way -0.2% (n=12) |
| 7 | 10y Treasury yield DGS10 📈 chart | Rate | ▲ +6bp hist -0.98–+10.33% · other way -1.9% (n=12) |
| 8 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▼ -0.5% hist -14.56–+2.77% · other way +18.48% (n=7) |
| 9 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▼ -0.4% hist -12.79–+2.22% · other way -7.22% (n=12) |
| 10 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▼ -0.4% hist -8.87–+2.47% · other way -2.14% (n=10) |
| 11 | Arm ARMon Hyperliquid 📈 chart | Equity | ▼ -0.3% hist -8.45–+3.82% · other way -9.95% (n=3) |
| 12 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▼ -0.4% model prior · unmeasured |
| 13 | Robinhood HOODon Hyperliquid 📈 chart | Equity | ▼ -0.3% hist -1.36–+0.56% · other way -9.58% (n=4) |
| 14 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▼ -0.3% hist -0.21–+0.17% · other way +1.89% (n=12) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 39 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| ARM ARM | SHORT | -8.1% · 5d -9.3% | 100% | 4 | 0.58 | ✓ matches cascade |
| Bitcoin BTC | SHORT | -10.6% · 5d -6.5% | 71% | 24 | 0.36 | ✓ matches cascade |
| SOL SOL | SHORT | -12.2% · 5d -9.5% | 70% | 20 | 0.33 | ✓ matches cascade |
| XLK XLK | SHORT | -0.3% · 5d -1.0% | 72% | 32 | 0.30 | ✓ matches cascade |
| MSTR MSTR | SHORT | -4.4% · 5d -3.3% | 69% | 32 | 0.29 | ✓ matches cascade |
| SMH SMH | SHORT | -1.2% · 5d -1.2% | 66% | 32 | 0.28 | ✓ matches cascade |
| NVDA NVDA | SHORT | -4.0% · 5d -5.0% | 66% | 32 | 0.23 | ✓ matches cascade |
| ETH ETH | SHORT | -7.8% · 5d -4.9% | 64% | 22 | 0.22 | ✓ matches cascade |
| High-yield credit HYG | SHORT | -0.3% · 5d +0.0% ↺ fades | 65% | 31 | 0.20 | · |
| 30y yield DGS30 | LONG | +7bp · 5d +1bp | 59% | 39 | 0.16 | ✓ matches cascade |
| SPX SPX | LONG | +0.3% · 5d -0.3% ↺ fades | 59% | 39 | 0.16 | ⚠ differs |
| EURUSD EURUSD | SHORT | -0.2% · 5d -0.1% | 59% | 32 | 0.16 | ✓ matches cascade |
| COIN COIN | SHORT | -3.0% · 5d -4.1% | 58% | 19 | 0.13 | ✓ matches cascade |
| NDX NDX | SHORT | -0.3% · 5d -1.4% | 59% | 34 | 0.12 | ✓ matches cascade |