TSX posts record high as oil prices, bond yields climb
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index posted a fresh record high on Tuesday as higher oil prices and bond yields supported energy and financials, while auto suppliers benefited from U.S. President Donald Trump's warm words for Canadian trade the day before.
Bond yields jumped after Federal Reserve Chair Janet Yellen said it would be unwise to wait too long to raise U.S. interest rates.
Higher yields reduce the value of insurance companies' liabilities and increase banks' net interest margins.
Manulife Financial Corp (MFC.TO: Quote) rose 1.5 percent to C$24.95, while the overall financials group advanced 0.3 percent.
The group has soared more than 13 percent since the U.S. presidential election, helped by the prospect of U.S. economic stimulus and deregulation.
"Canadian banks are getting a bit pricey," said Ian Scott, equity analyst at Manulife Asset Management.
"You are seeing a bit of a move but just not nearly as much as you have seen in the past."