Rate hike decisions from the European Central Bank, the Bank of Japan and the U.S. Federal Reserve created caution on rates and limited fixed income gains during the second quarter of 2026, according to a new report by FTSE Russell. It found government bond yields decreased modestly as oil prices fell from a short-lived stabilization process. However, the report noted Canada’s macroeconomic and policy conditions show signs of ‘benign inflation,’ with the oil crisis caused by U.S.-Iran conflict having little overall impact on domestic financial conditions.