The global economy lost some momentum in the March quarter, but fundamentals remain robust.
US core inflation measures are rising, which is flowing through to longer-term expectations and pushing yields higher.
The threat of a trade war between the US and China continues to be a source of significant uncertainty for markets.
Australians will receive cuts to income tax as anticipated, while public infrastructure spending should help bring the economy closer to capacity.
Inflation in the euro area remains sluggish, with core inflation falling sharply from 1.0% to 0.7% in April.