Global corporate bonds outperformed the government bond market over the month. Positive global risk appetite and low volatility provided a constructive backdrop for the credit market. US economic data was largely positive, though core US inflation remained subdued, at 1.6% year on year for March, unchanged from the prior month. In common with the US, first-quarter eurozone growth surpassed market expectations. Eurozone inflation was similarly muted, with core eurozone inflation at just 0.8% for March, and with headline inflation having dipped to 1.4%, down from 1.5% in the prior month. Japanese technology firm SoftBank unveiled a ¥500bn ($4.48bn) bond offering to help fund its investment strategy. Saudi Arabia state-owned oil producer Saudi Aramco issued $12bn of bonds, its market debut as part of the country’s push to open up the Saudi economy to global investors.
*Source: Lipper to 30 April 2019, total return. Indices rebased to zero at 29 March 2019.
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