Poor economic data and soft inflation saw several central banks, including the Federal Reserve and European Central Bank, take a dovish turn in March. Contrary to expectations that interest rates would rise as the G3 central banks were no longer adding to their balance sheets on a combined basis. The sharp drop in interest rates and the flattening of curves in March are the key factors shaping the investment climate. The decline in yields has occurred even as oil prices have climbed, with supply disruptions more than offsetting demand concerns.
As the first quarter drew