As bond yields rise, how to pick between a variable or fixed rate mortgage?

Rising global bond yields, including in Canada, are influencing mortgage choices as over one million households face renewals. Fixed-rate mortgages, tied to bond yields, have increased, with five-year fixed rates around 4.34%, nearly 1% higher than variable rates at 3.43%. This gap is driving more interest in variable-rate mortgages, which offer lower initial payments but carry risk if rates rise. Fixed rates provide payment stability but may cost more now. Shorter fixed terms offer a middle ground amid market volatility.