The Globe and Mail reports in its Friday, Sept. 4, edition that bond yields have recently surged to their highest levels since 2024, influenced by hawkish comments from the Bank of Canada. The Globe's unbylined Mortgage Rates column reports that the Canadian five-year bond yield is also impacted by elevated U.S. bond yields, partly due to significant government spending in the United States, said Chartered Professional Accountants of Canada chief economist David-Alexandre Brassard. This could lead to higher fixed mortgage rates, which have already stood above the 4 per cent mark for some time. If you believe the BOC's commentary and market expectations around rate policy, headline interest rates could also be on their way up. But if the current status quo with tariffs and the war in Iran lasts, Mr. Brassard believes otherwise. "Downward risk from tariffs is bigger to me than upward risk from higher oil prices," said Mr. Brassard, who said higher oil prices have not yet translated to widespread inflation. Mr. Brassard said, "In the longer term, we'll suffer more from the U.S. trade war." For now, he said variable mortgages could be getting cheaper, even as fixed rates get more expensive.