The Globe and Mail reports in its Friday, Jan. 24, edition that major policy shifts by President Donald Trump, particularly the threat of tariffs, are creating a volatile environment for Canadian fixed mortgage rates as bond markets react to U.S. inflation risks and a potential recession in Canada. The Globe's Salmaan Farooqui writes that lenders typically set fixed mortgage rates based on the U.S. and Canadian bond markets, which are trending upward due to President Trump's agenda. This is a departure from the previous expectation that fixed-term rates would stabilize near the mid-to-high 3-per-cent range by 2025. The Canadian five-year bond yield, key for fixed mortgage rates, rose from a low of 2.6 per cent last September to about 3.1 per cent this week, having peaked near 3.3 per cent in December and January. Economists see Mr. Trump's calls for mass deportation of migrants as potentially inflationary on wages. As a result, there could be further mortgage-rate increases in the short term, they say. "Clearly there is impact coming from south of the border impacting mortgage rates in Canada," says CIBC deputy chief economist Benjamin Tal, who noted similar bond volatility in U.S. bonds.