The Globe and Mail reports in its Friday edition that mortgage rates are under pressure as inflation rises and bond yields increase. The Globe's Salmaan Farooqui writes that Statistics Canada reported inflation reached 2.8 per cent in April, up from 2.4 per cent in March, marking the highest rate since May, 2024. This rise is mainly due to surging gas prices linked to restricted oil exports from the Middle East. Energy costs haven't spilled over into other sectors yet -- grocery inflation actually decreased between March and April -- but economists say inflation could become widespread if the conflict continues. The Bank of Canada is expected to decide on rates on June 10, with most predictions pointing to no changes next month. However, markets are anticipating one or two quarter-point rate hikes by the end of 2026. Meanwhile, the Canada five-year bond rate has been on a wild ride this week. It rose to its highest level in 22 months at 3.39 per cent on Tuesday, and has since settled at 3.2 per cent on Thursday afternoon. The current level is still higher than in recent months, and Ratehub's lowest advertised three-year mortgage rate recently jumped by 10 basis points to 4.19 per cent as of Thursday afternoon.