TSX Slides as Yields Hit Multi-Year Highs
The S&P/TSX Composite Index fell 1.6% to close at 35,751 on Wednesday as yields reached multi-year highs. Bond yields rose sharply as energy-driven inflation concerns persisted, with oil prices moving higher amid uncertainty over diplomatic efforts to end the US-Iran war and reopen the Strait of Hormuz. Strong US economic data also strengthened expectations that the Fed could deliver another rate hike this year. US Treasury yields soared to multi-decade highs, further pressuring Canadian bonds as domestic yields tend to track US rates. Major banks posted losses, with RBC down 2%, TD Bank falling 2.4%, BMO shedding 2%, and Scotiabank retreating 1.6%. Gold, silver, and copper extended their declines, pressuring miners. Agnico Eagle fell 3.9%, Barrick declined 3.2%, and WPM tumbled 5.4%.
6% to close at 35,751 on Wednesday as yields reached multi-year highs. Bond yields rose sharply as energy-driven inflation concerns persisted, with oil prices moving higher amid uncertainty over diplomatic efforts to end the US-Iran war and reopen the Strait of Hormuz. Strong US economic data also strengthened expectations that the Fed could deliver another rate hike this year. US Treasury yields soared to multi-decade highs, further pressuring Canadian bonds as domestic yields tend to track US rates.
6%. Gold, silver, and copper extended their declines, pressuring miners. 4%.