RBF UCITS Monthly - March 2017

• Fed hiked rates by 25bps to 0.75-1%
• China data remains supportive of growth momentum
• Fund’s USD I Class gained 0.43% in March
• Sovereign and quasi-sovereign issues from the Middle East outperformed
• Added a number of new issues including Oman and Kuwait government

A mixed month saw the yield on the 10-year US Treasury spike as high as 2.627% during March, eventually closing marginally lower over the month at 2.388%; as Trump-euphoria began to wane. The President abandoned the health care bill vote, thus expectations for future reform - such as the deployment of fiscal spending and the overhaul to the tax bill - hung in the balance. Softer US sentiment saw the dollar continue its retreat through the month, falling 0.76%. Meanwhile, as was widely expected, and priced in, the FOMC hiked the Fed’s funds target rate by 25bps mid-month to 0.75-1%; the futures market ended the month pricing a 56.7% chance of a further hike in June this year.

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