TSX Slips as Bond Yields Rise

The S&P/TSX Composite Index fell 0.3% to close at 35,582 on Tuesday amid surging oil prices and elevated bond yields. Domestic 10-year government bond yields approached the 4% threshold, remaining near their highest level since 2007. The prospect of higher interest rates pressured credit-sensitive stocks, with the Federal Reserve set to raise its policy rate by 25 basis points on Wednesday. Financials posted losses, with TD Bank down 0.5%, CIBC shedding 0.6% and National Bank falling 1.3%. The mining sector closed mostly lower amid softer gold prices. Retailers posted sharp losses, with ATD down 2.7% and Loblaw falling 2.3%. Meanwhile, Prime Minister Mark Carney unveiled immediate tax write-offs for most new capital investments in an effort to spur growth and attract foreign capital. Carney is welcoming dozens of global investors to Toronto this week, seeking investment in key projects amid the trade war with the US.