August 21, 2023

On Monday, the S&P 500 was up 0.7% . The gains came in the afternoon, as this market trended lower in the first few hours of trading. Toronto was down 0.2%. 

The government of Canada 5 year bond yield rose to 4.195%. This higher rate probably explained why a Royal Bank perpetual preferred share RY.PR.N was down 3.7% today. Yesterday it was yielding 5.7$ and today it is at 5.9%. Despite its high quality and despite that fact that interest rates are expected to decline within a year or two it seems that 5.7% was not attractive in the face of interest rates continuing to creep up.

 

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