A volatile first quarter for markets may be behind investors, but a challenging macro environment remains as they assess trading risks and opportunities in equities and bonds for the coming months.
The steady withdrawal of central bank stimulus, led by the US and Europe, rising global trade tension and fears that economic growth may have peaked all shape as influencing investor sentiment for the coming quarter.
Top-tier government bond yields have been confined to a narrow range since their sharp climb higher in January. Unless the mood in appetite for equities and credit brightens, the prospect of a US 10-year Treasury yield rising beyond 3 per cent appears slim.