Global markets continue their positive momentum on-the-back of the strength of the recovery in the US and China, however stretched valuations are starting to weigh. The improving inflation outlook and US Fed rate hike expectations have driven the bond yields higher. An improving outlook for interest rates and strong commodity prices has driven a better yield outlook for the two major sectors of the Australian market. We continue to be positive on the premium to bond sustainable yield trade in an improving inflationary outlook. We expect the US Fed to be the only central bank to raise rates in 2017, while the rate of change will be slower than what the market is expecting. SHIELD picks are... (VIEW LINK)