Canada’s banks have begun to drop mortgage rates by up to three-tenths of a percentage point as the cost of borrowing in the bond market falls.

The latest cuts lower the posted rate for a five-year closed mortgage to 5.95% at CIBC and TD Canada Trust., down a tenth of a percentage point.

The biggest rate cut is to TD’s seven-year mortgage rate, which drops three-tenths of a percentage point to 6.40%.

Canadian bond yields have been falling as traders believe that the Bank of Canada is unlikely to raise interest rates until at least July, and perhaps not until the fall.

The lower yields translates into cheaper borrowing costs.