FX.co ★ TSX Futures Slip on Higher Yields

Futures tracking Canada’s main stock index slipped on Tuesday as surging oil prices and rising bond yields weighed on sentiment. Domestic 10-year government bond yields moved toward the 4% mark, nearing their highest levels since 2007. The prospect of higher borrowing costs is expected to pressure credit-sensitive sectors, with the Federal Reserve poised to raise interest rates by 25 basis points tomorrow. At the same time, declining gold prices put additional pressure on mining shares. Elsewhere, Canadian Prime Minister Mark Carney is hosting dozens of global investors in Toronto this week in a bid to attract capital for projects considered critical to supporting Canada’s economy amid the ongoing trade tensions with the United States.