s earl davis talked about the trade in treasuries. >> could be volatility everywhere, but this is wheree manager. this is why it's perfect time to be in the shoes we're in. we have our expectations, as i said, we do expect yields to go lower. but the market we also expect to go higher. that allows us opportunity to get long. this is the difference between massive and active. vonnie: u.s. treasury yields climbed after solid economic growth prompted traders to trim their expectations for the scope of federal reserve easing this year. for more on this, we're joined by liz mccormick. thanks so much for joining us am we did get movement, but still haven't priced out t fourth rate cut. how much room is there for yields to move between now and the next fed meeting? >> yeah, i think you just highlighted earl davis saying there's a lot of investors who think yields are going down, but they're saying there might be some backup. weave had a great four-month run with yields falling, and i think the data, like you said, is key. second quarter, we're a little stronger than people expected. and jobles

jonathan: earl davis, unequivocally dovish. your view of chairman powell last week. experience actually is going to be a full steepener. your two years will outperform your teens and 30's, but it is our preference to go long tens and 30's because the volatility will be lower. from a sharpe ratio or risk-adjusted ratio it makes more sense to go long tens and 30's. jonathan: this time yesterday we caught up with collin martin. he said the treasury yield plunge makes duration less attractive. how do you think about that? just a valuation proposition? earl: i fully agree with that statement. that is why we are only calling it a five on 10 long on the market. the thing with this market, all of the evaluations have gotten arguably ahead of themselves for now. you never know when the next spike lower will be. i have been in the market 30 years and of timing was my strongest suit i would not be on the show right now, i would be on the beach somewhere. [laughter] i was want to make sure i'm in the position i want to be, but i'm looking toward 4%, where we really add to our lo

earl davis of bmo on this. the economy remains solid.july, but a 50 basis point cap in september, it is possible due to a deficit. earl joins us now for more. i think you have to take a step back and do that repeatedly throughout the whole of this morning. what happened on friday, and that it change enough for you to move things we are seeing in this market currently? earl: yeah. the change friday is the fed has been alluding that now it is all about employment and not inflation. when we got the number that we got on friday, people ran to the doors. the door is only so wide. that is why you get this acceleration of the move. it has not changed for us. different time frames, yes. let me tell you about the short term. write it was a good day for us. we were long, overweight duration heading into friday, but not only do we cover that overweight, we started shorting the market now. friday posted the lows. we put on, let's call it 1-30 powermax short. today, 370 or better in the 10-year, we will put on another third, and then we are waiting f