Big Banks Respond Swiftly to Bond-Yield Surge

Fixed mortgage rates at major Canadian banks increased by 10 to 20 basis points for two- to five-year terms due to a rise in the five-year Government of Canada bond yield. The yield peaked at 3.711% before settling around 3.593%, driven by higher oil prices, inflation concerns, and global rate hikes. This sustained increase in bond yields is causing fixed mortgage rates to rise.