Stocks saw a hearty rebound in the first quarter, in part thanks to easing inflation and speculation around a potential pausing, if not reversal, of rate hikes in the US (Canada has already paused its contractionary policy). Long-term bond yields in both countries have come down as a result. Recession fears remain, however, with oil prices down as markets anticipate slower economic activity. The collapse of Silicon Valley Bank in the US further contributed to a flight of capital towards safe havens (including the US dollar and gold), though subsequent intervention aimed at calming markets brought the Greenback back to its year-start level.
|US Gov 10-Year||3.48%||3.88%||-40bps|
|CAD$ / US$||0.740||0.738||-0.3%|
Returns are based on price change only, and exclude dividends. Foreign indices are in USD.
Source: National Bank Financial, QUANT Monitor as of March 31, 2023