Global Rate Shock and Upward Pressure on Fixed Rates

Published Thursday, January 29, 2026 · Rates, market figures and outlooks in this article reflect its publication date and may differ today. Ask us for the latest picture. Translated from the Korean original.

How rising Japanese government bond yields and North American long-term bonds moving in tandem affect mortgages in BC

Key Points

• The surge in Japanese long-term bond yields has pushed U.S. and Canadian long-term government bond yields higher as well (coupling)
• Short-term rates are stable while long-term rates rise, steepening the yield curve
• Long-term bond market rates are rising regardless of the BoC's policy rate
• Banks may raise fixed rates pre-emptively to manage risk

What It Means

Even with the policy rate on hold, Canadian long-term rates are rising in step with the Japanese and U.S. government bond markets. This means upward pressure on fixed mortgage rates. Variable rates may remain stable, but fixed rates could rise according to market forces, so if you are considering switching from variable to fixed (lock-in), it is a good idea to watch closely.