• Brent crude gains ~3% on the month
• Fed rhetoric turns hawkish; members state 2-3 rate hikes possible this year
• China data indicates stability
• US Treasuries and Russian quasi-sovereign holdings remain supportive

Asset markets were very mixed in May. FOMC rhetoric switched midway through the month, erring on the hawkish side and Brent breached the $50 level during the final week, gaining 3.24% over the month. The yield on the 10-year US Treasury was pretty much unchanged, closing at 1.85%, while the 2-year fell 10 basis points (bps) to 0.784%, after some Fed members commented on the prospect of 2-3 rate hikes this year, starting as early as June.

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