Monday, June 4, 2007

Canadian Stocks Decline, Led by Royal Bank, as Yields Raise Profit Concern

(Bloomberg) -- Canadian stocks declined, led by
financial shares, after the country's two-year bond yield held near
the highest in five years, exceeding longer-term bond yields and
raising concern that bank profit margins will be squeezed.

``People have a knee-jerk reaction that when you get an
inverted-yield curve, banks are going to suffer,'' said Gavin
Graham, who helps oversee about $5.3 billion as chief investment
officer at Toronto-based Guardian Group of Funds.


Read more at Bloomberg Stocks News

No comments: