Risk on market sentiment has returned in May. As tensions in the Middle East have dissipated, benchmark equity indexes have rebounded and are approaching or exceeding their record highs in many cases.

The yield on the 10-year US Treasury note has fallen markedly, by over 30 basis points relative to the mid-April peak of around 4.70%, although it remains above its 4.3% around the turn of the year According to the Reuters website, the 10-year yield is forecast to fall to 3.85% in a year, slightly lower than the 3.90% median of the primary dealer banks who deal directly with the Fed participating in the poll.