29.05.202614:03:00UTC+00TSX Advance on Falling Bond Yields

The S&P/TSX Composite Index inched higher on Friday, trading above 34,500 as an agreement to extend the US–Iran ceasefire lifted hopes for a resolution to the Middle East conflict and investors digested fresh GDP data. On Thursday, the US and Iran agreed to prolong their ceasefire and remove restrictions on shipping through the Strait of Hormuz, though the deal still requires approval from US President Donald Trump.

Oil prices pulled back, easing energy-driven inflation concerns and driving bond yields lower. That decline in yields supported bank shares and the broader index by tempering worries about higher borrowing costs. At the same time, Canadian GDP was flat in the first quarter of 2026, reinforcing expectations that the Bank of Canada will maintain a dovish stance and adding further downward pressure on bond yields.

Among financials, RBC, TD Bank, and BMO each added around 1%. Strength in gold prices also bolstered mining stocks, with Agnico Eagle rising more than 0.5% and Franco-Nevada gaining nearly 1%.