. -- reaction in treasuries. when we were on the show yesterday morning, 10 year treasury yields were around 1.63%. then it was down to 1.61%. then we got strong u.s. data, unequivocally strong. that continued the move in treasuries or accelerated the move lower. we went down below 1.52%. on the day we fell about 10 basis points. before that rebounding up to around 1.57%. we are around that level today. stable after yesterday's volatility. it was a large move, counterintuitive. it seems to be a technicals issue. that is slightly confusing. the one area speculators had this position on was the 10 year. it is squeezing the position that was least vulnerable to be squeezed. anna: which is curious. some technicals you need to be aware of. i was reading a piece by one of our colleagues suggesting quantitative easing does not do what we think. when banks buy out bonds, it is not necessarily generate huge demand elsewhere and therefore push yields in the direction we expect. he suggests actually quantitative easing push

treasury market.e saw this volatility in q1. some big jumps. we are getting passed the one-year anniversary of the glop of the treasury market last march. we saw this disconnect in of the price of cash bonds and futures. what is the big picture telling you about the connection between this and a lack of regulation in that market? >> thanks for having me today. the regulation of this market is a five-alarm fire. the way in which this market is regulated is not set up to give regulators the opportunity and equipment to see the risks that are developing. what we are seeing today is a market structure and lacks core guardrails that are present and common in other marketplaces. what we have here in the treasury space is a market that does not have a primary coordinating regulator. unlike derivatives, the treasury market regulation is divided. we have a system in which it is hard to come up with basic -- romaine: when we talk about the wreck -- the lack of a let tory issues, i am curious about -- we know wh

treasuries moved? there is also the treasury market happening, that is right. even with good momentum, we did see people buying treasury lately which we do not usually see. for years it went long and now short. a lot of weird stuff going on and something going on in positioning might explain why treasuries got this big. romaine: they were reporting on the short squeeze, -- the cayman islands. joe: let us bring in reporter kriti gupta. the real question is we have not gotten a satisfying answer. it does not make sense that -- how things start today, very strong, i would expect more and treasury. kriti: you would think so, you would think you would see a bigger reaction. the question is how much is priced in? how much sensitivity is there to a conversation we knew what eventually happened. this is where you are hearing a lot of fund managers and analysts say we are waiting for the next catalyst. we have abandoned that sensitivity to the job smart -- jobs market. in 19.4% rise in housing, that is insane. the answer to the cayman islands question is the beaches. ro

so we are taking a careful look att the treasury department and the treasury market structure and allhe various aspects of that to have the treasury market to work even in difficult times. there was such a demand for selling treasuries including by the foreign central banks that the dealers couldn't handle the volume. as the market was starting to lose function that was a serious problem we had to solve through massive asset purchases. and then to build against that extreme risk. >> thank you. >> thank you fed chairman for the question. there is so much fiscal health and accommodation in the fed but toe' follow the normal economic conditions when you see the economy standing on its own feet and with fiscal spending in the transitory inflation does more spending need to be injected in the system. >> when will the economy be able to stand on its own feet? i am not sure the exact nature of that question. >> when do we need to lower the amount of treasuries you are buying when can stand without that support from monetary policy. >> we articulated for that we will continue asset to see sub

treasury secretary janet yellen soberly. get back to chelsea to talk about that in just a moment because it was a declaration of war on tax havens around the globe u.s. treasury secretary janet yellen is proposing for a global minimum tax on corporations is met with approval not just from the i.m.f. dispassionately here in europe and it's causing some unrest in the cover of. the british virgin islands are highly prized by some corporations the ones that shift profits across national borders into shell companies in order to pay hardly any taxes u.s. treasury secretary janet yellen proposal for a global minimum tax rate of 21 percent was aimed at these companies washington urgently needs additional revenue because the pandemic is costing billions the u.s. treasury loses nearly $50000000000.00 a year to tax cheats according to the advocacy group tax justice network germany comes in 2nd and france is also among the top losers no wonder yemen is finding support in europe. the u.s. treasury secretary janet yellen said yesterday th

very seo, look at the treasury spread with us for like evaluation treasury on march or -- as conditions improved, you should see the bond yields as well as treasury notes going higher? >> what we have seen is that the big realization or reopening trade has began to down policy. a slow entering some kind of suck -- entering some kind of consolidation phase start. jerry 8 -- 30 degrees. in a high-fashion environment and a lot of upset on inflation price, so we do want to be a bit more cautious as how we are -- approaching high-yield market. i think investing a little bit broader perspective than that. what you're seeing are extremely tight valuations. income markets are more directly impacted by liquidity, but when you think about the fundamental factory structure or economic exposure, it is too early to take those chips off the table. and it's just how and what insurance on best russian. find better expressions that economic risk and have much better valuations sees have some news role -- no -- bigger value if you have a bigger two. to play with this cycle is going to harder, -- if they

this is the third week of gains for treasuries.he third week of yields moving lower over the week. euro-dollar, $1.2053, up about 0.3%. equity futures, 4136 on the s&p. we are up 9, 0 .2%. lisa: i could try to make this less serious and talk about ken's birthday for the next 30 seconds, but instead, we are getting ego manufacturing and services pmi. you saw a resurgence in services despite all the bad headlines about the spread of the virus there. still, people are getting hired as waiters, as people serving and doing. meanwhile, manufacturing accelerated at a record pace. at 10:30 a.m., bloomberg is hosting a summit on climate. janet yellen, christine lagarde, and a number of others, including mark carney, are speaking about climate and capital markets' role in combating some of the emissions we have seen. and today, the fda meeting about the j&j vaccine. -- the cdc is meeting about the j&j vaccine. we are in desperate need of a need to curb the spread of the virus. jonathan: lisa, thank you. here's the news. the news is that the

the other one is treasury market structure. dealers are committing less capital to that activity now than they were 10 or 15 years ago. and the need for capital is higher because there's so much more supply of treasuries. and so there are some questions about treasury market structure, and there's a lot of careful work going on to understand whether there'sing something we can do about this because we, you know, the u.s. treasury market is probably the most single important, single most important market in the economy in the world. it needs to be liquid, it needs to function well for the good of our economy and the good of our citizens. so it's not clear what, where that tapings you -- where that takes you, but we are taking a careful look, and the treasury department is really going to be leading this. treasury market structure and all the various aspects of that to make sure that we do have a resilient, strong treasury market that can work even in difficult times. as you know, at the very beginning of the financial, of this r

treasury secretary janet yellen someone europe say they're all for it. and contact lens shopping in moscow and why data activists are steering clear of it. this is c.w. business i'm joined now by law on how you can join us. here's the good news the global economy is expected to grow by 6 percent this year the bad news the rebound will be far from even that's the message from a report by the international monetary fund out today while spending programs and vaccine rollouts are guiding richer nations towards recovery for countries especially those that rely on tourism are falling even further behind as a result last year the economic crisis pushed an additional $95000000.00 people into extreme poverty defined as living on less than one u.s. dollar and 90 cents a day vaccine inequality and lack of polish support is worsening the situation so while there is a rebound there are some caveats here's i.m.f. chief economist he took open not what we are seeing is multi-speed recoveries around the world what that means is that countries that have very stiff differe

at treasury market structure and treasury market that can work in really difficult times. as the very beginning of this recent crisis there was such a demand for selling treasuries including by foreign central banks that really the dealers couldn't handle the volume. so what was happening was the market was really starting to lose function. and that was a really serious problem, which we had to solve through really massive asset purchases. and, you know, we like to see if there isn't something we can do to -- do we need to build against that kind of extreme tail risk and if so what would that look like? >> thank you. edward lawrence. >> thank you fed chairman for the question. there's so much fiscal health and accommodation from the federal reserve. you said today the vaccinations will follow the normal economic conditions or lead to more normal economic conditions this year. when do you see the economy being able to stand on the same feet so to speak? and with the fiscal spending and accommodation you talked about with transitory inflation does more spending need to be in

treasury secretary janet yellen something europe they're all for it. to contact lens shopping in moscow and why data activists are steering clear of it. this is the w. business i'm to know them and have the you can join us well here's the good news the global economy is expected to grow by 6 percent this year the bad news the rebound will be far from even and there might be permanent scarring that's the message from the world economic outlook a report by the international monetary fund that has just been released take a look if all goes according to plan it would be the fastest expansion of the global economy since the i.m.f. started tracking growth in 1988 the fund says such an optimistic forecast is only possible thanks to a repetition cool response to the pandemic but there's no doubt some sectors have suffered irreparable damage now because the crisis has exhilarated the transfer made of forces of digitalisation and automation many of the jobs lost are unlikely to return requiring work or reallocation across sectors which unfortunately often comes

why do treasuries provide that buffer? we came into this year, and i have forgotten how many times we had a conversation about a 60/40 portfolio. we had to think about something else. are you saying it is back? this idea that a balanced portfolio is dead -- greg: this idea that a balance portfolio is dead is mistaken. you want to have some balance in your portfolio that allows you to put money back into equities. you need that diversification, that balance in your portfolio to help you write out those. periods. having that balance in the portfolio is critically important. the other thing for people to remember is that if you are investing for the long run and you are concerned about rising interest rates, if you have a long-term time horizon, the thing to keep in mind is if your time horizon is longer than a duration of a fund, you will benefit because you will be able to reinvest those coupon payments at higher yields over the long run. there is not that much to be fearful of, unless you have a very short-term time horizo

treasury including undersecretary of u.s. department of treasury for u.s. finance and the secretary of the treasury for international affairs and director of the international monetary policy. previously in the early 90s the department of treasury for banking legislation and financial institutions. you can find on the web usually the pictures of jay powell and randall quarles nearly 30 years ago and their role and now of course they are leading the federal reserve and its critical. mr. quarles is a cum laude graduate of columbia and has those law degree from yale. so let me now turn to our friend and colleague the chair of the financial stability board will randall k. quarles. randy. you are muted, randy. there we go, sorry. >> the new button was missing on my screen for a moment. sorry about that. and thank you, thank you adam for that introduction. it doesn't leave much time for the speak today but thank you for that. generous introduction and it's an honor and the pleasure to be here at the peterson institute which is a group that has driven much of the

_ that we become part of the heart of treasury torque and treasury activity. — treasury torque and treasury to get to from london, _ children here? we are very easy to get to from london, as _ children here? we are very easy to get to from london, as well - children here? we are very easy to get to from london, as well as - children here? we are very easy to | get to from london, as well as very easy to _ get to from london, as well as very easy to get — get to from london, as well as very easy to get to london from. and i am very. _ easy to get to london from. and i am very. very— easy to get to london from. and i am very, very hopeful that when we get the people — very, very hopeful that when we get the people coming up from the treasury. — the people coming up from the treasury, to work here, they will not take — treasury, to work here, they will not take very long to realise that we are _ not take very long to realise that we are arr — not take very long to realise that we are an extraordinarily welcoming part of— we are an extraordinarily welcoming part of the _ we are an extraordinari

treasury including undersecretary of treasury and finance and assistant secretary of the treasury for international affairs as well as international director of the monetary fund. trees in the early 90s he served as secretary of the treasury for banking and financial institutions. you can find on the web easily the pictures of jay powell and randall quarles 30ra years ago n the roles of the time and now they are on the reserve at this critical period read mr. corrozo said graduate of columbia and yale. let me now turn to our friend and colleague the chair of the financial stability board randall k. quarles. randy. you are muted, randy. >> they are ago, sorry. the mute button was missing on my screen for a moment. sorry about that and thank you adam for that introduction. it doesn't leave much time for this speech today but thank you for that very generous introduction and it's an honor and a pleasure to speak from the peterson institute which is a group that has driven them much of the most important economic issues. i've always been engaged with it. i only wish we could all be there

treasury secretary janet yellen called for a global corporate tax rate during a speech on global affairs. this runs 45 minutes. od morning. president of the chicago council on global affairs. thank you all the specially for a members for joining us this live program today. just as a reminder, the chicago global affairs is nonprofit and nonpartisan independent organization and therefore the views expressed by the individuals we use our platforms are there on it and they do not represent the institutions positions or views of the council. and out main program a party covid-19 negative effects from the global economy has exasperated the existing inequalities and highlighted the importance of writing solutions through international cooperation. today, your secretary treasury janet yellen joins us here the chicago council global affairs to discuss the u.s. roll in providing inclusive and sustainable global economic recovery ahead of this week's international monetary fund annual spring meeting. after the secretary's remarks all introduce a number of our councilmembers to the questions and to

treasuries they are in cash i think about 6 and a half trillion of that is sitting in bank vases and short term instruments such as u.s. t. bills on top of that you have got investments portfolio investments in the stock market now they are important because the 1st people who will feel sensitive to a fall in the passing power of the currency are foreign owners off it and they will demand a higher return in order to stay with that currency so we are likely to see increasing market pressure on the fed which means that they will be fighting to keep the short overnight rates close to 0 bond now this is important because either the fed responds by raising rates or the dollar tax i mean it's really a binary choice is the simplest that that's true you know you've got the u.s. dollar wild reserve currency but if there was. again when you started and you said any of that now have a definition for inflation and a definition for deflation and ask you now into. minus 1010 reasons mean different things clearly when you've got an economy where the employment participation rate in the us is that s

pension funds insurance funds sell government debt treasuries to the fed and. the fed gives them cash through the banking system which puffs up the bank's reserves i mean that's just a balance sheet effect and the pension funds and the insurance funds are encourage to to invest in riskier assets and so you get money going into corporate desson you get money going into. entered into the stock market into into or restocks and that is the bubble right on one hand they have the central banks are saying we are creating a wealth effect but on the other hand they're taking it away from us through inflation and the people who are suffering of the low paid the people who contra spawned to this situation of the purchasing power of their wages and their pensions and their savings being taken away from them they can't respond but as you rightly say the people who really benefits are the people who are in the system the rich the people who have set up these enormous companies you know the bill gates this well and so on so forth so that is why you've got this divide actually

treasury now i have been following. closely as you will but i. i can tell you the 10 year treasury has actually risen quite steeply in recent months is a little bit off the top but we're talking about something which in february the yield was just under want the sentence now what 1.66 percent that's a reasonable rise and near 0 which basically means a reason for if you like it priced 10 year treasury now not only that but you have to bear in mind for the ownership dollars that is standing approximately $28.00 trillion dollars which has the g.d.p. of roughly 2021 trillion dollars so the foreigners are they owed an awful lot of dollars and guess where they are they are in u.s. treasuries they are in cash i think about 6 and a half trillion of that is sitting in back because it's a short term instruments such as u.s. t. bills on top of that you have got investments portfolio investments in in stock markets now they are important because the 1st people who will feel sensitive to a fall in the purchasing power of the currency are foreign owners off it

we have made it a top priority at treasury, and our goal is to bring the full force of the treasury department'srces to bear on climate related policymaking. we are focused both domestically and internationally, so i would say first of all, we are working on issues that we have been discussing related to climate transition finance, how to promote investments by the private sector that are going to be needed to meet the paris agreement goal. second, we are involved in climate related economic and tax policy, figuring out economically what does the united states need to do to meet its nationally determined contribution of reducing emissions by 50% to 52%, below 2005 levels, by 2030. that is an ambitious target. tax policy will play an important role in helping us get there, both through carrots such as tax credits for electric vehicles and to meet emissions goals for investments in clean energy, and sticks. we have been providing very large fossil fuel subsidies for almost 100 years in the united states, and fossil fuel subsidies are prevalent around the world. so we have been looking at that and

. >> meantime treasury has a new report about the made in america tax plain.> reporter: treasury putting a little bit of new detail behind the tax changes underpinning the american job plans that says it will raise $2.5 trillion over 15 years by raising the corporate tax rate and establishing minimum tax rates for companies operating here and overseas and reversing some incentives for activities involving fossil fuels. treasury officials say they are aiming for a deal by the end of this year on a global minimum tax that it's currently negotiating with the international community and the u.s. is convinced it will reach one. some of the changes they were proposing were requested by those negotiating partners in meantime treasury says profit shifting overseas remains at record levels that the 2016 tax law did not change that as planned and that taxes by u.s. companies recorded in some seven tiny tax havens still stand greater than by u.s. companies in china, canada, germany and a host of other companies combined in u.s. there is also a proposal for a 15% minimum

stump stability -- some stability in the treasury market.uro-dollar to we could go through the 200 day moving average. we break below it. then we start talking about a $1.16 handle. now we are getting really close to breaking above it. one dollar eight -- $1.1864 is your 200 day moving average. that is just some of the technical factors playing into the euro-dollar story of the last couple of weeks. tom: the vix is very important. we just had a 16 handle. 17.01 on the vix. you asked me where we need to be to be pre-pandemic. i did a kleinman moving average, and 15.60 is a critical point for vix. we are not there yet, but we are getting there rapidly. jonathan: 17 handle on the vix. a little more on that a little later. here's romaine. romaine: you talk about the vix but it's doing. you also have to look at the volume. it has been a real tepid week for volume. second lowest volume day on the s&p yesterday this year. a big part of that is you're just not seeing the influx of buyers coming to this market. the buyers that are coming to the marke

, first ever secretary of the treasury. there have been a lot of biographies of hamilton, and yet they do get left out because people -- i mean, not here. museum of american finance, necessarily. but people don't like to hear necessarily the word "the economic nation" or the word "finance." i am writing a book on this subject and my agent said to me when i was sort of pitching it to him, i would say, you know, the financial -- he would say, don't say "finance." we're trying to pitch a book here that people might want to read. don't say "finance." and i'm like, right, i got you. and then every so often, a buzzer goes off when i happen to say the word. no, it's not finance. to hamilton, of course, he would use the word, but no, our connotations with that are not his. to hamilton, this is money, power, wealth, greatness, size, scope, expansion. things that are actually highly active and dramatic. greatness. i guess i just used that word. i mean dominance. making the nation into america, the empire. that's a word he would use.

secretary of the treasury janet yellen joins us at the chicago council to discuss the u.s.'s role in promoting an inclusive recovery ahead of this week's international monetary fund spring meeting. after the secretary's remarks i will introduce council members to pose questions to secretary yellen. right now it is my honor and privilege to introduce today's speaker. janet yellen is the 78th state of the secretary. she took office after almost 50 years in the academy of public service. she is the first and only person to have served both as the head of the council on economic advisors, head of federal reserve, and a secretary of the treasury. secretary yellen, thank you for joining us. we look forward to hearing your remarks. >> thank you so much and thank you to the council for the invitation. america is strongest when we engage with the world. when i was born the united states was still recovering from the great depression and world war ii. these tragedies cost countless lives. too many families lost more than everybody but we learned an invaluable lesson. the united states

i really wish i could speaksh personally with the treasury secretary. because i really would be amused by her answers and reminded me of the time that i said we needed an electronic currency and secretary mnuchin told me he was not interested in that, get to happen yesterday one of the things you can count on of the world of economic policy is economist have to deplaned in the past and it's hard to get them looking forward the treasury department no matter who's in power is playing yesterday's baseball game without even the benefit of yesterday's paper to show them the result. >> let's give them a call this is mary and fort washington maryland, democrat line yon with our guest professor of economic university of maryland. hello. >> hello i just want to say i'm very upset about the fact thatha joe biden's agenda when it comes to taxing the corporations as sounding like business as usual. what the hell is 28% going to give us when it was 35% report was knocked out, amazon pays no taxes. i will boycott any company that does not agree raising the taxes high

japan is the largest foreign holder of treasuries, so an important source of demand. the second theory is that there could be some short covering going on. one person from susquehanna was on the phone earlier and said the etf round, as well as the implied volatility, so that could be evidence there is a squeeze going on. if you look at short interest, it is close to the highs in four years. it was the consensus trade for months,. and that could be cracking now. caroline: china treasury holdings hitting the highest since 2019, perhaps the japanese buying as well, so clearly demand. i'm interested in your perspective on the rotation trade. before every day it was energy, banks go higher in the market looks good in the economy is reopening, but today was the opposite. katie: whether this is a short covering squeeze or what is going on, that bond rally played out, tech and front leading everything higher, including the s&p 500. on a longer-term basis beyond today, it is still lacking on the year, but over the past month, that is your top performing sector. it is financial

exceptionalism is tightening treasuries to bunds. on any drawdown in treasury to bunds momentum, do you read buy the dip in compression in the spreads? do you look to that to return to a higher ground? james: ultimately, on a medium-term horizon, the u.s. growth prospects, in my opinion, are significantly greater than they are in the eurozone. it's very difficult to tease out the underlying secular forces because obviously, there is so much going on from a pandemic lockdown and certainly fiscal policy perspective. ultimately, i believe that spread is justified in being wide but i think what is happening in the short term is that everybody is piled into the short treasury trade in a number of forms, one of which is long bunds versus treasuries. if you look at how the market has reacted to some of these massive growth we have seen in the u.s., it is indicative that in the near term, in the short term, positioning has got way ahead of really what the economy can produce and justify in treasuries, treasury shorts particularly, so it has

he's about to become the secretary of the treasury. and the opposition is this kind of the white working class of the day in an interesting scope between socialistic ideas and kind of small capitalist ideas in dire opposition to that and that's what sets off a lot of the explosions that i believe to end this on this note. before so we can get some q&a in here are still in many ways. with us today so i'm going to leave it at that and thank you for your very kind attention today. thanks a lot. as we're about to do the q&a. let me say one more thing. i want to because i'll forget i want to thank the museum of american finance for for its multi-time tolerance of my eccentric and uproarious approach to the whole hamilton problem and also the alexander hamilton awareness society. i don't know if you guys are still speaking to me after this, but if you even if you're not i think you very much for your liberal. actually. i should say approach to these kind of dissenting views. thanks a lot. how are we doing this q&a? it's our microphone going

this was a specific task about the feds interventions and treasuries interventions. that work continues. we are getting ready to release our april report and we continue to look at the decisions taken by treasury and the fat, how they were reprised, what they were doing, and we are looking at the aftermath, the loans they made, and how the loans are performing. host: in general, would you rate that piece of the cares act a success for american business? guest: two pieces of it. the fed's actions in march were extremely effective in getting the economy and markets functioning. in the aftermath of their actions, we raised an outstanding amount of climate capital in the debt and equity markets to save american business. and to keep american business going in the face of the pandemic of the complete unknown. the fed's quick actions were important. the cares act investment they did helped the airlines, helped many people in the transportation and cargo business, helped companies that were connected to national defense, and the main street lending program helped hundreds o

the committee going long five year treasuries.e broader markets coming up in the next hour, jaguar growth partner ceo saying emerging markets narrative is vibrant at the moment, more on his em outlook. also we will talk to you why oceana about what to ask black at -- what to expect at the policy meeting later today. this is bloomberg. ♪ (woman) i don't want to look like this anymore. (man) what is happening to my body? (woman) why can't i lose weight? (announcer) you may be suffering from insulin resistance. measure your waist. females measuring more than 35 inches and males measuring more than 40 inches may have insulin resistance. to learn how to reverse insulin resistance and lose weight effectively, go online to golo.com. once again, that's golo.com. haidi: a very good morning. you're coming down to asia's major market open. shery: welcome to daybreak: asia. asian stocks look to climb after stocks rallied to a record and sell of economic data indicated it is getting momentum. scott minerd says it's only a matter of time before

treasuries since four decades ago. i do expect that is going to remain a dominant theme because the fed is pushing back on stepping in to curb higher yields. they do see this upbeat growth prospect. we are going to get spikes in inflation that could prove to be transitory, but that will certainly likely test the market in terms of those higher yields. ultimately it is the case we are going to see rising yields extend through the second quarter. something to watch. anna: italy extending lockdown measures. france introducing new measures for four weeks. moving the wrong direction, isn't it, even if it is the right thing to do in terms of our fight against covid-19. another reminder this battle is not yet won. you wonder how that plays out. >> what is interesting is the fact we have this sharp divergence between what we are seeing in the u.s. in terms of the sizable fiscal impulse and what we are seeing in europe with extended lockdowns. when we look at equity markets, the stoxx 600 has recorded four consecutive quarters

we kick things up in the united states and the treasury selling $40 billion of bonds.igroup is joining the bond blitz with its $5.5 billion offering, the fifth major bank to offer high-grade debt after reporting solid quarter results and first-time issuance fueling the action, boosting monthly sales close to $50 billion. the busiest april ever in the fifth is used of record. back with this is our panel. the conversation we just had about the federal reserve, the should and shouldn't conversation and whether there is any disagreement in the treasury market because when i look at things, i think the market and the fed is pretty well-received. >> i'm not sure about that either. people get what's being praised in for rate hike. it has come down the past couple of weeks or go -- or so but you are still looking and an 80% probability of a rate hike depending what the fed tells you. i think the market continues to push hard against the fed and powell is pushing hard back. i think that is what we will see the rest of this year and then some. i still think there is lots of wood

and the bank— officials in the treasury and the bank of— officials in the treasury and the bank of englandwhere he called david cameron a former prime minister and, i cameron a former prime minister and, i now— cameron a former prime minister and, i now suspect, a former lobbyist. and i_ i now suspect, a former lobbyist. and i think— i now suspect, a former lobbyist. and i think some of these e—mails and the _ and i think some of these e—mails and the way— and i think some of these e—mails and the way he was trying to present his case _ and the way he was trying to present his case showed that he wasn't doing fantastically well at getting this. in a fantastically well at getting this. in a way, — fantastically well at getting this. in a way, there is a system working at the _ in a way, there is a system working at the treasury that made sure that this particular ask didn't happen, and the — this particular ask didn't happen, and the accusation will be that they eventually did get access to another fund where they were a lender, and some _ fund where they were a lender, and some of— fund wh

what would that mean for the treasury market?el: another reason why treasuries have done so well in the last few weeks, yields are exceptionally high in the u.s. compared to the rest of the world. with the vaccine rollout heading better in europe, lockdowns presumably ending in spring, europe will catch up. the rise in 10-year treasuries has been a strength. in order to get u.s. yields higher, european yields have to go higher first in order to catch up a bit with the u.s. if you are looking for higher u.s. yields, you have to look for a higher european yield first. jonathan: what if i'm looking for income, where am i going? michael: right now the place to go is in credit markets, mortgage backed securities, and or corporate great credit, high yield credit. in a world of stability, are we entering a period like goldilocks? it is likely china will be growing slower than the u.s. for the first half of this year. we don't want the boom to strong such that central banks need to push rates higher than sooner otherwise. a slowdown in c

treasury market is probably the single most important market in the economy of the world. and needs to be liquid and function well for the good of our economy and citizens. it is not clear where that takes you dog but we are taking a careful and treasury department, and the treasury department is going to be leading this and all of the various aspects of that to actually do have a resilient, strong, treasuring market that can work at difficult times. at the beginning of this recent crisis, there was such a demand for selling treasury, including by foreign central banks that new dealers handle the volume. you are. was starting to lose function. that was a serious problem, which we had to solve through mass and asset purchases. would like to see if there's -- you need to fill in -- building as that time of -- type of risk and what would that look like? >> magician in your thoughts. today it will lead to more normal economic conditions this year. when you see the economy being able to stand on its own feet, so to eke -- so to speak? and you talk about transitory inflation, do

and the treasury at this moment has set up an office to try to deal with it. and their focus right now is just getting the funds out to the -- the stimulus funds to government, and distributed by may 11st. that's their first order of business. and then guidance probably on a lot of detailed programs. >> supervisor mar: um-hmm. great. and maybe it's not so much a question but just wanted to make a point on one of the guiding principles that you had shared about coordinating with other -- other arpa recipients to ensure that the funds that we're getting and they're getting are coordinated in the best possible way. so i think that -- yeah, i think that is very important, especially looking at the school district and city college, for example, receiving some direct relief funds. and then, you know, we at the board and as a city, have been, you know, doing what we can to support the school district and city college. so i do think that we need to make sure that we're coordinating with them and the other agencies too. and supervisor safai, yes, city college is aware

treasury market is a global market. we may potentially be looking at a situation in which we've got buyers from other parts of the world coming in risks are emerging -- coming in. risks are emerging in russia, and china. we are seeing yields come down in chinese sovereign debt. that is bringing foreign buyers into the u.s., so a few things to thing about here. alix: if we. with what jay powell talked about yesterday, a rough sketch of how the fed may eventually exit, saying we will reach a time at which we will taper asset purchases when we have made substantial further progress towards our goals, but that that would in all likelihood be well before the time to consider raising rates, he pushed it out to maybe 2024 or some thing like that. maybe they are not going to sell actively, but let them rolloff. i wonder how much of that is a reaction to the market as well. we can go by a lot of high flight -- go buy a lot of highflying tech, but the fed is not doing anything soon. emily: i think this kind of disagreement we are

do you meet with the treasury of thesecretary regularly or people on the white house that ? are you doing? >> the standard way it happened is that there's a weekly and it's been a breakfast or lunch between the secretaryof the treasury and the fed chair and rotates between each building . that's what i've been doing d with secretary yellen. in addition there's been a monthly lunch with the head of the national economic council so there's a relationship there . meetings with presidents and fed chairs are very infrequent and not on any sort of the schedule and i have not met with the president. >> had you met him before he was s president weston mark you must have met him at some point in yourlife or you haven't met him yet ? >> i think i've shaken his hand i haven't met him and talked to him. >> let's talk about what it's like to be the chairman of the fed. one day you're a private citizen and you can go to the restaurant, whatever you want .y you can do anything socially. when you're on the fed board you constrained in you can socialize with, what you can say restaurant? whe

the first call was made with treasury and i'm a bureau of treasury supervised by the secretary. >> i think i understand that. so we will take it up with a treasury, with the secretary of the treasury been as well and the white house because look, this makes no sense. you have mom and pop businesses who have a a hard time anyway complying with complex regulations. now we make it seems like they don't have to file intel may. but then all of a sudden they start the process and realize oh, they were supposed to make a payment anyway. this i think is confusing. i think it is unnecessarily confusing. you also probably have some 1090 nines individuals, , if you talk about the give worker, gig workers, not that sophisticated of the tax filer and there also confused by this deadline. a deadline date is may 17 but really requires people to do something before hand is i think at least for this segment of the population confusing. i just don't get why we are creating this level of uncertainty in this environment. particularly when there's probably other complexity related to the covid packages a

treasury and vectors doubting that inflation will be as fleeting as the federal reserve thinks. -- treasurynvestors doubting that inflation will be as fleeting as the federal reserve thinks. >> slightly higher as treasury yields jump, contrasting with jay powell's assertion that they are not ready to wind back stimulus. we are bringing in nancy davis of quadratic capital, getting your thoughts on inflation. you are saying the cbi index should be higher but it is not because of how it's calculated. >> it is just the index and it is important for your viewers in the world to know that the u.s. cbi is not the only way to measure inflation and they are going to do the best they can, but there are a lot of things that are not in this and investors need to be aware of other measures of inflation expectations as well. >> tell us about your inflation expectations. it's no surprise coming through from the fed but when do we start to get this thought of talk about to bring? >> they are not -- tapering is not on the table at the moment. they have been pretty clear that they are also going to keep poli

treasury. first ever secretary of the treasury. you would not think they get left out because there's been a lot of biographies of hamilton. but they do get left out. not here, the museum of american finance. necessarily. people don't like to hear the word "the economic nation" or the word "finance," i'm writing a book on the subject and my agent said to me when i was sort of pitching it to him, i kept, i would say, you know, the financial -- he would go, don't say finance. you know, we are trying to pitch a book here that that people might want to read. don't say finance. and i'm like, right, i got you. so, and then every is so often a buzzer goeses off when i happen to say the word, no, no, it's not finance. because it's really, you know, to hamilton, of course he he would -- he would use the word. our connotations of that are not his. to hamilton, it's money, power, wealth, greatness, size, scope, expansion, things that are actually highly active and dramatic. greatness as i guess just used