joining us now drew matus is drew matus from metlife, chief strategist. drew: the results will be fundamental. higher yields mean higher yields and it doesn't really matter to people who are trying to borrow why those move. jonathan: the question is whether the fed should respond? drew: let's hope not. you had mentioned it was a real yield move. if you wanted to be an inflation move, try extending purchases or increasing purchases because people are worried about the inflation story but that is not the reason for the move. they will worry is if the fed worries and buys more. you raise shields in the front and in if you talk about the leverage story that would be wait to go in the current environment but they won't do that. lisa: let's talk about technicals to understand how prone this market is to disruption akin to what we saw yesterday. what were the technical underpinnings of yesterday's disruption? drew: your talk of hedging and positioning themselves. you have an emerging story of increasing supply at the fed and everyone at the treasury has seen com

jonathan: coming up, drew matus. drew likes higher rates. city this morning, good morning. futures unchanged on the s&p. on the 10, 1 .4753. this is "bloomberg surveillance." ♪ >> the market is the fed as to whether or not it will be able to hold the line. >> we are seeing adjustments in how far it goes is the question. >> that is where the central banks will allow it. >> we will get higher inflation but mostly because the economy will come soaring back. >> it is good for the re-inflation and cyclical trade and that is where we want to be. >> this is bloomberg surveillance. jonathan:

secretary matus said at the graduation one year we are not made of cotton candy and he's right. . . . . thank you again . thank you again. congratulations on what everyone understands as a truly significant book. i know we are both anxious for the army that we served to reopen as i noted earlier for the real american heroes that fought for the nation who would inspire to strive for excellence and would be unifying rather than divisive figures. let me conclude with one of your observations one appropriate for the historical society and the audience it attracts to create a more just society we must start by studying our past. if we want to know where to go, we must know where we have been. i could not agree more and i want you to know it has been a privilege to discuss your courageous, forthright thought provoking book with you this evening. thank you very much and thanks to all of you that have joined us virtually this evening. congratulations. >> thank you, everyone.

important for people to hear this and others that come around i know general kelly is they are now and jim matus friends of mine for graft to come to grips with the fact that i work for somebody and as a result of that may contribute to a lot of pain in our society to a person i was racially charging the society it is inconsequential and the fact was we were accomplices and we have to acknowledge that pain and if we don't do that in my opinion is almost the way a drug addict has to turn to his family member and save my actions caused a lot of pain and i'm sorry about it. if we don't do that we will not heal tonight to talk to somebody like general kelly i did it for country and did it for this and that but we did contribute and i start speaking out right after the congressional midterms but i needed to speak out earlier than that frankly and i will never the rest of my life. we have to get more people to own it and those on the side of the republican democracy. >> in the time that we have left and date stamp our talk today to say this is the second day of the impeachment hearing. want to get eve

during the attacks tweeted this, ted lieu and his argument winning out the key former trump officials, matus, john kelly, john bolton, mick mulvaney and mcmaster and alyssa farrell blame trump for fomenting violence at the capitol on january 6. and from diana degette before her presentation today tweeting this about jamie raskin's presentation, saying that, as representative raskin is said trump did not just yell fire in a crowded theater but sent a mob to burn down the theater as part of her presentation, she talked about her experience on the sixth of january. >> my friends and colleagues, yesterday was an emotionally wrenching day and as i watched the footage of the violence in the capital building my own experience flooded back to me. i was one of the unlucky members who was stuck in the house gallery along with tongass woman dean. as the house floor was cleared beneath us of members and staff we could see the mob pounding on the door to the house chamber and we could see the capitol police officers inside the chamber pulled their guns and point them at the intruders. then, we heard guns