katie: joining us now, blackrock's marilyn watson. ristian armani of lafayette college and cliff corso's of asset management. marilyn, let's start with the market reaction. we're looking at 16 basis points higher on two-year treasury yields. the 10 year treasury yield back to 3.50. is this a overreaction? >> it highlights we are at this point in the market where we are so incredibly data-dependent. we have seen so much volatility continue after the fed and recent data we have seen. we have these incredible latent market data today. we have strong ism. it has been noted a lot about financial conditions easing. yet, we have had a huge amount of rate increases. 4.75 in the span of about a year. we are at this point which is difficult to for the market to determine the future path where the economic data is going to go and assess where we go from here. i think it is highlighting the uncertainty at the moment. the fact is, the labor market remains incredibly strong. inflation is coming down in the u.s. now is going to be very much a case of

marilyn watson joins us, the head of global fundamental strategy at blackrock.ision? the shift up in the yield curve we see, what is your t decision at blackrock in bonds? marilyn: yields considerably higher than they have been. in the last few days, the market is continuing to refocus on where the terminal rate might be. also how long rates will remain elevated for a long period of time. also the level cash and where you can get that as well. the decision for investors is looking at new portfolio, income natural abilities, interest rate duration risk, and how you can get returns from the income you want and this is versus cash, not versus risk asset anymore. looking at the bond market, it is focusing on getting very high quality, decent carry and comparing that to where you can get the cash and showing you are getting what you want. lisa: what point do you extend that to duration? we were talking with brian weinstein earlier and he was saying now is the time shifting four year yields. do you agree? marilyn: we are increasing duration. now is the time we lock in