joining me is andrew chorlton, kathy jones, and jay berry, head of u.s.overnment bond strategy at jpmorgan. it is great to have you. kathy, this is a broader asset class story. not a single idiosyncratic theme we had a month ago. kathy: global liquidity is shrinking and we were not priced for it. in severalerway months ago because valuations were too high. as the fed tightens, this is what happens. risk premium starts to expand and it is where we are. alix: -- jonathan: do you see signs of contagion? mohammed talked about technical factors. are you starting to see the technical bleed through? the startcrowded at of the year and you have the own elect scenario and you could justify it. now technicals are turning and investor greed has really driven it. jonathan: jay, it is interesting that they were asking for a basic call that the federal reserve and the balance sheet and treasury boosting issuance at the moment because of the fiscal stimulus is overwhelming double liquidity. it is taking away from emerging markets. they complained on the way up and are c

with me around the table, andy chorlton, kathy jones, and jay berry.ternational diplomacy a risk for the global bond market? kathy jones, is that something you even have to think about over the next week? kathy: we have had a few surprises recently when it comes to the international diplomacy. and obviously, the big thing we worry about is the trade outlook. because that has the potential to impact global growth and fed policy and central-bank policy and inflation, etc. but at this stage of the game, we tend to shrug these off quickly. jonathan: because they take so long to burn through, jay. and i guess the markets looking at the situation thinking, is a breakdown of diplomacy a risk to the global growth story? does it derail global growth? does it? jay: from our perspective, we do not think it does what has been -- does at this point. and with what has been announced on trade so far, it takes a little off of u.s. growth this year but nothing that changes our view on inflation or the fed or those developments. that is the first order of events for us.

joining me is andrew chorlton, berry, head and jay of u.s. security at j.p. morgan. it is great to have you. this is a broader asset class story. not a single idiosyncratic like we had a month ago. global liquidity is shrinking and we were not priced for it. high.ions were too as the fed tightens, this is what happens. risk starts to expand and it is where we are. jonathan: mohammed talked about technical factors. you are starting to see the technical lead through. trade.as a popular you had the goldilocks scenario and you could justify it. technicals are turning and investor greed which hasn't driven it. , it isn: jay interesting that they were asking for a basic call that the federal reserve and the balance sheet and trevor e boosting and double liquidity. it is taking away from him emerging markets. they complained on the way up and down. how do they respond? jay: this is coming front and center right now. late last year and the beginning of this year, we ran an upswing of -- we were in an upswing of growth. now the growth has decelerated in the euro and japan. th