March was a month with overall solid gains in Europe and the United States. Yields on 10-year Treasure notes stabilized after strong gains since November last year, somewhat easing concerns on potential interest rate hikes. Rising bond yields have kept markets on edge so far this year on concerns that an economic recovery from COVID-19, combined with fiscal stimulus, could cause a spike in inflation from catch-up consumer demand when lockdowns end.
February was a bit of a rollercoaster with main stock indices booking solid gains early on in the month but then gradually selling off again during the second half. Nonetheless markets overall gained in February, erasing the small correction in late January and turning positive year to date.