taylor: peter yi, marilyn watson, and collin martin still with us. ven the divergence in the euro area, what other opportunities are you finding in credit? marilyn: in credit options in particular we have switched more of our holdings to european investor great credit, for example. we like names where we have seen slight widening and we have allocated more money there. we are for duration in terms of germany as well, particular given that the ecb this week, they are more on a slightly hawkish tilt. going from a slightly steeper yield curve and higher yield as well. unicredit market overall, w--in the credit market overall, we see better valuations in the euro zone. taylor: i want to talk about high-yield a little bit. bradley rogoff of barclays has seen a choppy credit markets ahead. he wrote, "we expect the trend of higher volatility to continue through the holiday season and into the new year." collin, is the biggest risk to high-yield now some of the volatility? collin: we think it will be more volatility as opposed to a sustained drop prices. what

joining us to discuss his marilyn watson, head of global fundamental fixed income strategy at blackrock. that's start with chairman powell and work our way into this bond market. did you since a big shift yesterday from the chairman? marilyn: we did since a shift -- we did sense a shift. we had a much more risk off tone with the variant coming through, leading to a huge amount of uncertainty back in the market. i think that has led to investors feeling a bit more cautious going into chair powell and his testimony. we have been saying for some time that we think the fed really is in a position now where they can accelerate the taper and start to maybe raise rates to our even three times -- rates two or even three times. but i think the market was caught offguard given the volatility of the past few days with the negative news around covid. but i think in terms of the overall trajectory of the market, that is where it has been heading. i think it was just surprising given the context of the past few days. jonathan: qe has been very important for signaling to economies and financial market

we will catch up with marilyn watson the head of global fundamental fixed income strategy at black. that conversation around the corner and we will work through those recent comments from chairman powell as we march towards a december 15 federal reserve meeting. before we get there we have payrolls friday later this week. from new york city, this is bloomberg. ♪ hey, angie! you forgot your phone! hey lou! angie forget her phone again? yep. lou! mom said she could save up to $400 on her wireless bill by switching to xfinity internet and mobile. with nationwide 5g at no extra cost. and lou! on the most reliable network, lou! smart kid, bill. oh oh so true. and now, the moon christmas special. gotta go! take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes switching fast and easy this holiday season. >> pent-up demand and disrupted supply chains are leading to inflation worldwide. >> we might even see corporal say should -- we might even see core inflation at 6% in february. >> economic data is going to be hard to trade