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CANADA STOCKS-Toronto stock market's winning streak ends as bond yields climb
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CANADA STOCKS-Toronto stock market's winning streak ends as bond yields climb
May 26, 2025 12:00 PM

*

TSX ends down 0.8% at 25,839.17

*

10-year yield rises to near four-month high

*

Real estate falls 2.1%, tech ends 2.3% lower

*

Canada Goose jumps 19.1% on quarterly sales

(Updates at market close)

By Fergal Smith

May 21 (Reuters) - Canada's main stock index pulled back

from a record high on Wednesday as long-term borrowing costs

climbed and investors took stock of recent gains for the market.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 214.46 points, or 0.8%, at 25,839.17, after

posting a record closing high on Tuesday.

The decline ended a 10-day winning streak for the market,

the longest such run since October 2021.

"Yields have popped up, which has caused some concern for

investors and I think also just a pause based on the recent

strength in the market," said Stan Wong, a portfolio manager at

Scotia Wealth Management.

The Canadian 10-year yield rose 8.4 basis points to 3.382%,

its highest level since January 16, as investors reduced bets on

Bank of Canada interest rate cuts after domestic data on Tuesday

showed underlying inflation heating up in April.

U.S. Treasury yields also climbed as investors monitored the

progress of a tax bill in the U.S. Congress that could swell the

government's debt load.

The interest-rate sensitive real estate sector fell 2.1% and

technology ended down 2.3%. Higher bond yields reduce the value

to investors of the long-term cash flows that high-growth tech

stocks are expected to produce.

Heavily weighted financials lost 1% ahead of the start on

Thursday of earnings season for Canada's big banks. The lenders

are bracing for trade uncertainty and are expected to have

shored up loan loss reserves in the second quarter.

The materials group, which includes metal mining shares, was

the only one of 10 major sectors to end higher, adding 1.3%.

"Gold prices are near record highs and that's brought a lot

of momentum to the sector," Wong said.

Shares of Canada Goose Holdings Inc ( GOOS ) jumped 19.1%

after the luxury retailer reported stronger-than-expected

quarterly sales.

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