The Globe and Mail reports in its Thursday edition that the U.S. Federal Reserve raised interest rates on Wednesday by a quarter of a percentage point to a range of 3.75 to 4 per cent. The Globe's Andrew Galbraith and Mark Rendell write that Canadian government bond yields reacted little to the Fed decision. The five-year yield was unchanged at 3.659 per cent and the 10-year yield edged down one basis point to 3.941 per cent. "You'd be hard-pressed to say there was a dramatic readjustment in Canadian rates," said Jim Gilliland at Leith Wheeler. "The Canadian curve had already priced in a pretty significant amount of tightening and maintained that through the decision by the Fed," he told The Globe. Swaps-market pricing Wednesday indicated expectations for between four and five interest rate hikes by the Bank of Canada by next June. While many Canadians are focused on domestic interest rates, the five-year yield, which is dominated by moves in global bond markets, is more relevant to Canadians with mortgages. "As goes the U.S. five-year, it will drag up or pull down the Canadian five-year as well," RBC chief economist Frances Donald said, adding the U.S. bond market is just as important as what the Bank of Canada does.