all of the talk is about convexity.s taylor riggs says, about the pace of change that may be is a little bit concerning. what that could mean for the positioning that some folks had? josh: i think the freak out is mostly talk at this point. the convexity hedgers, people have to head -- have to hedge whether they like it or not and and up chasing the market. there has been some rebalancing and reallocation. things like mortgage hedgers, they play a role. broadly speaking, the moving yields has been fundamental. the question is, are they disconnected from the fundamental outlook? that is what markets should reflect. joe: we were talking about it earlier, this idea that at certain levels company 10 year yield starts to look more attractive to foreign buyers. at 1.7% or roughly where it is, how does the math work out from your perspective such that foreign investors can get a big pickup in yields going to u.s. treasuries? josh: it is not just the level, it is the hedge level. if i am a en-based investor, i ultimate -- if i

there is a lot of assets which have been manipulated by central banks which are very negatively convexed could lose 10 or 15 in a bad scenario. having hedges in place is very useful in a selloff. i will give you one example. u.s. investment grade debt. companies have issued longer that. these bonds are bought by the federal reserve but there are a lot of companies that are still weak. those are names that will widen in a selloff. it is not thinkable that you have the treasury going above 2%. and investment grade and high-yield spreads staying where they are. investments are very long. we are concerned, not so much about inflation, but about positioning. that will drive these moves wider and potentially drive volatility in the next couple of months. mark: you say it is more about positioning and you have an aggressive target on yields. you have referred to bond holders as frogs boiling in a pot. alberto: the boiling point is probably above 2% for 10 year treasury yields in nominal terms and getting close to zero in real terms. why? you have a lot of assets that pay you very little. think

i think that would convex the issue which has happened in the u.s.ause the way the mortgage market is constructed there. there were some internal technical issues which should show some reassurance that said come i do not think this overall story is behind it. i think will keep cropping up next couple months. while last week there were technical issues, the move over the last couple of months is more about the fact we have this reopening trade and this fear of higher inflation driving people to hedge inflation fears by buying more commodities which drives higher inflation expectations. that dynamic does not appear to have ended yet. i know commodities traded lower on friday but again they are looking again this morning and the theme of higher commodity prices will continue to scare the market. is the threat over? no./ have we short-term seen the peak? probably. haslinda: so how much worse can it get? you say we have not seen the peak. how much worse could it get? in the end the focus is on the federal bank reacting. the rba has intervened. mark: i th

nascent competition is just an example and the problem is worse on the convex side. what i would say in conclusion is that we face clear in convincing evidence of competition that competitive markets but the problem is in part a resource problem but even more significantly hostile case law to enforcement and over relying on settlements resulting in adequate resources with state judicial antitrust laws and excessive excessive quantification thank you for the opportunity to speak with you today and for the protection of our vibrant american economy that i hope you will act to preserve. thank you. >> thank you very much. i'm going to go through these issues one by one and maybe you mr. lynn first. when mr. sutton was talking about the fact that there is that concentration acknowledged it was by sector but not locally. i'm looking at the literature that professor rose talked about and i think there's a lot of concentration going on. people feel about there and it's everything from walking in the senate in hearing some pretty conservative republicans. about how they are c