What’s going on here?
The Toronto Stock Exchange’s S&P/TSX composite index slipped by 0.33%, or 71.92 points, to 21,716.56 as rising bond yields stoked market jitters.
What does this mean?
A hotter-than-expected inflation report pushed Canadian 10-year bond yields up by 8 basis points to 3.471%, creating ripples across the market. While traders expect the Bank of Canada to keep interest rates steady in July, they’re forecasting two 25-basis-point rate cuts later this year, with BofA Securities even predicting a rate cut as soon as next month. Most sectors faced declines due to the bond yield uptick, except industrials and materials, which saw modest gains of 0.1% and 0.9% respectively. Gold prices also took a hit, dropping by 1% to a two-week low as a stronger dollar and increased bond yields weakened the metal’s appeal.
Why should I care?
For markets: The bond yield ripple effect.
Rising bond yields are shaking up stock markets, and…
