FX.co ★ 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 bond yields climbed to multi-year highs. Yields surged on renewed, energy-driven inflation concerns, with oil prices advancing amid uncertainty over diplomatic efforts to end the US-Iran war and reopen the Strait of Hormuz. Robust US economic data also reinforced expectations that the Federal Reserve may deliver another rate hike this year. US Treasury yields rose to multi-decade highs, adding pressure on Canadian bonds, whose yields typically track US rates. Financials were broadly weaker, with major banks posting notable losses: RBC slipped 2%, TD Bank dropped 2.4%, BMO declined 2%, and Scotiabank fell 1.6%. Meanwhile, continued declines in gold, silver, and copper weighed on the mining sector; Agnico Eagle lost 3.9%, Barrick retreated 3.2%, and WPM sank 5.4%.