RBF UCITS Monthly - May 2015

  • Underlying volatility in developed market rates dictated credit spreads
  • China easing measures in Q1; signs of supporting growth
  • US Q1 growth revised to negative, further disappointing data
  • Best performers from positions in quasi-sovereign Russian Issues

In a month where the Greek tragedy was once again a main feature and US data prints were rather soft, the market witnessed some of the largest swings in developed market sovereign bonds so far this year. As the global bond market sell-off continued into the end of May the yield on the ten-year German bund ended the month twelve basis points higher at 0.49% having spiked to intraday highs of 0.78% mid-month. Meanwhile the US Treasury ten-year yield rose nine basis points in May to 2.12%, settling from year highs of 2.29%; during the month. Away from bonds the S&P Index rose to new heady heights and the US dollar gained 2.44%, measured by the DXY Index (a dollar index).  

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