Canada's 10-year government bond yield, the TSX composite and Brent crude had moved together through early August as Strait of Hormuz risk built, but Tuesday broke that pattern. The bond yield spiked to its highest level since May 2024 before easing, and the TSX kept climbing on financials and industrials rather than oil, while Brent gave back its earlier gain. The split shows three parts of the market now pricing three different time horizons off the same standoff.
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Cargojet led Tuesday's TSX session, up 4.6 percent, as financials and industrials drove the index to a fresh intraday record.
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Brent was the only one of the three to finish above its starting level, while the index and gold both fell.
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The Bank of Canada held its policy rate at 2.25% for a seventh straight time, yet Canadian yields rose as United States yields surged.
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The index fell for the month even though Brent crude gained and the Strait of Hormuz stayed shut, because rising United States bond yields outweighed oil and gold.
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Canadian yields drifted higher through August even though the Bank of Canada held its policy rate at 2.25% and had no decision to make during the month.
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Gold rallied and gold miner shares carried the TSX higher, while Brent ended the month close to where it began.
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