06:33 AM EDT, 03/13/2026 (MT Newswires) -- The Canadian 10-year government bond yield pushed above 3.5% on Thursday for the first time since last July and is within 10 bps of its 52-week high, said Bank of Montreal (BMO).

Yields are up about 35 bps in just the past two weeks alone, noted the bank. It's a similar story for five-year yields.

This upswing will put pressure on the longer-term mortgage rates, stated BMO. That, along with the confidence-sapping rise in gasoline prices and the Iran war in general, is bound to dampen an already "soggy" housing market.

This rise in bond yields is, in itself, a reason why the Bank of Canada shouldn't be considering hiking short-term rates -- the bond market is already doing some pre-emptive tightening, according to BMO.