. >> joining me around the table is henry peabody. cyberonicsrg's lee -- and bloomberg's lisa abramowicz. henry, i want to begin with you. why is so much of this happening in europe at the front end? we have seen volume explode, intraday moves for 20 basis points on two years, why all of that? henry: there is a bit of a curve flattening going on. you see the risk coming out at the end of the market with liquidity. what has happened in europe? fairly solid improvement over the last handful of years and sustainability, lower interest cost, but they have not grown to the degree the rest of the condit has. there is a reason for unrest there. the question is how do you decouple italy from europe and you do not. that is the issue. willie get worse before it gets better? probably -- will it get worse before it gets better, probably. >> yet the think about what you are pricing in. -- you have to think about what you are pricing in. that just means we are pricing in more supply. which one is it, lisa? that we are on 2.5%. ecb ist feels like the

jonathan: joining me around the table is henry peabody, and bloomberg's lisa abramowicz, and matt brillrom invesco. henry, i want to begin with you. why is so much of this happening in europe at the front end? we have seen volume explode, intraday moves of some 20 basis points on btp's on two years. why all of that? henry: there is a bit of a curve flattening going on. you see the risk coming out of the front end of the market with liquidity. let's take a big step back here. what has happened in europe? you have seen fairly solid improvement over the last handful of years -- debt sustainability, lower interest cost, but they have not grown to the degree the rest of the continent has. there is a reason for unrest there. the question is, how do you decouple italy from europe, and you don't. that is the issue. will it get worse before it gets better, probably. but you need to start thinking about, when is there an entry point? jonathan: to make that judgment call, you also have to think about, what are we pricing in? this is a government forming that wants to spend more, and that just mean

jonathan: joining me around the table is henry peabody, and bloomberg's lisa abramowicz, and coming tos from atlanta matt brill from invesco. it is great to catch up with you. henry, i want to begin with you. why is so much of this happening in europe at the front end? we have seen volume explode, intraday moves of some 20 basis points on btp's on two years. why all of that? henry: there is a bit of a curve flattening going on. you see that risk coming out of the front end of the market with liquidity. let's take a step back. what has happened in europe? you have seen fairly solid improvement over the last handful of years -- debt sustainability, lower interest costs, but they have not grown to the degree the rest of the continent has. there is a reason for unrest there. the big question is, how do you actually decouple italy from europe, and you don't. that is the issue. will it get worse before it gets better? probably. you need to start thinking about, when is there an entry point? jonathan: to make that judgment call, you also have to think about, what are we pricing in? this is a