FX.co ★ TSX Edges Lower on Higher Bond Yields

The S&P/TSX Composite Index edged lower to below 36,000 on Thursday as a sharp rise in global government bond yields pressured equity markets. Canada’s 10-year government bond yield approached a three-year high amid persistent energy-driven inflation concerns and a surge in US Treasury yields to multi-decade highs. Crude oil prices climbed on escalating tensions in the Middle East, while strong US economic data released on Wednesday pushed Treasury yields even higher, reinforcing expectations of another Fed rate hike this year and amplifying the global selloff in bonds.

Financial stocks were little changed overall. Weaker gold prices weighed on the mining sector, with Agnico Eagle, Barrick, and Wheaton Precious Metals all losing more than 1%. Kinross tumbled nearly 10% after cutting its production outlook for 2026 and 2027. In contrast, energy shares advanced on the back of rising oil prices. Retail stocks also gained after estimates indicated that retail sales likely rebounded in August, marking their strongest monthly increase since January. Elsewhere, BlackBerry fell more than 1% despite delivering strong results for its fiscal second quarter of 2026.