The Globe and Mail reports in its Friday, Sept. 11, edition that rising bond yields on Thursday may lead to higher fixed mortgage rates soon. The Globe's Salmaan Farooqui writes that the Canada five-year bond yield rose to 3.64 per cent on Thursday, the highest since May, 2024, increasing by 16 basis points in one day. This reflects market concerns about inflation linked to the war with Iran, outweighing the trade war's effects on the Canadian economy. Calgary-based mortgage broker Joe Jacobs says fixed mortgage rates are currently sitting at the low 4-per-cent range, but they could increase quickly to the mid- or high-4-per-cent level in the coming days. Mr. Jackobs says: "There are historical things that are happening, and history tends to repeat itself. When energy prices and oil are up, bonds [yields] are up, and rates are up." Meanwhile, markets firmly expect that the Bank of Canada will increase its headline interest rate, resulting in higher variable rate mortgages too. Bond swaps markets, which give a sense of market expectations on monetary policy, have priced in a 25-basis-point rate hike by the end of the year, and a second rate hike in early 2027.