TSX Dives on High Bond Yields as Banks Take Brunt

Canada's TSX fell by 0.6% on Thursday due to a sharp rise in bond yields, which hit multi-decade highs.

The 10-year US Treasury yield reached 5.34%, its highest level since 2002, while Canada's 10-year bond yield touched 4.01%, near its highest since 2023.

This caused a selloff in financial stocks, with banks such as EQB, Bank of Montreal, and Royal Bank of Canada each dropping more than 2%.

However, technology shares bucked the trend, gaining 2.3% after Micron Technology's positive revenue forecast boosted AI optimism.

The TSX's structure is also a factor in its decline, as lenders make up a large portion of the index and their fall can outweigh strength in other sectors.