Futures tied to the TSX edged lower on Thursday as a global bond selloff drove borrowing costs to multi-decade highs, against a backdrop of volatile oil prices. The continued slide in global bonds weighed on broader equity markets. In Canada, the 10-year government bond yield eased slightly on Thursday but remained close to its highest levels in years.
Oil prices advanced on reports of tighter fuel supplies in China, stoking persistent, energy-driven inflation worries. That, in turn, pushed yields higher and added pressure on rate- and credit-sensitive sectors.
In contrast, miners were poised for gains as gold prices firmed. The move in bullion followed a pullback in expectations for another Federal Reserve rate hike this month, after softer-than-anticipated US PCE inflation data tempered concerns over further tightening.
Investors will also be watching Canada’s September PMI release later in the day for fresh insight into domestic business activity.
