The TSX closed up 0.3% while the Nasdaq fell 1.25% on yields. A 30-year Treasury auction cleared at 5.618%
The S&P/TSX Composite Index closed at 35,145.38 on Thursday, up 0.30%, according to DailyDrop's quote feed. The U.S. S&P 500 fell 0.47% to 7,765.36, the Nasdaq fell 1.25% to 27,193.34 and the Dow rose 0.10% to 51,231.64, according to The Straits Times. Reuters attributed the slide to higher yields and oil prices and to AI-spending worries. The 10-year Treasury yield ended at 5.231%, down 4.6 basis points. A US$22 billion 30-year auction cleared at 5.618% with a bid-to-cover ratio of 2.54, per FinancialJuice, and Reuters reported demand was solid. Freddie Mac's average 30-year mortgage rate was 7.40%. The Financial Times headlined a Pimco warning of a 10-year yield near 6%; we saw only the headline. DailyDrop's feed has USD/CAD at 1.4211.
Long-term borrowing costs set mortgage rates and equity valuations. A strong auction eases fear of a failed sale, but a yield above 5.6% on the 30-year is still a cost for every borrower.
Canadian mortgage rates track Government of Canada bond yields, which tend to follow U.S. yields. If you renew in coming months, watch five-year yields rather than the headline policy rate.
The solid auction shows buyers exist at these yields, and the TSX's energy weighting cushions it against a tech sell-off.
Yields near multi-decade highs and a falling Nasdaq show how fragile the rally is, and the TSX can only resist while oil stays high.
Watch the 10-year against 5.25% and Brent against US$100. The TSX is being carried by oil; if crude slips on Iran talks, that support goes.
DailyDrop Canada edition No. 5 · Morning · FRI., OCT. 9, 2026