the e.c.b. made it clear despite the confusion we had around the march policy decision when there was maybe the impression given that the e.c.b. was looking to become a little more active in terms of reducing accommodation that that probably is not the case now. so i'd expect the situation to continue pretty much status quo. yields are going to stay fairly depressed and think we'll see the difference between which is important from an f.x. point of view the differential between u.s. yield and euro zone yields remain significantly wide in the u.s. dollar favor and the yield spreads there and is a major source of support for the u.s. dollar. i think it's a case of steady as she goes in terms of the impact of effects and probably impact yields as well. alix: what i found interesting was you had the hawkish rhetoric or interpretation out of the last meeting and you wind up having the officials coming out and trying to walk it back and the lateer is peter pratt saying it's not end of q.e. and in the u

there are other countries also, japan, the bank of england, the e.c.b., that are engaged in similar programs. so now we have international experience to add to that in the united states. i read all of that experience as saying that these programs are successful. but does it have a larger impact than we think? i suppose there is some research at the larger and and some on the more skeptical and. my assessment would be it had a favorable impact. i don't want to exaggerate exactly how large it was. but i think it was certainly favorable. with labor force participation rate relatively low compared to recent history, do we change how we think about -- what constitutes full employment and how that dictates monetary policy decisions? chair yellen: did you say labor force participation rate? >> right. chair yellen: the labor force purchase of -- participation rate has been declining for some time in general in the united states. because weing trend, have an aging population, is for it to fall further. but what has been hard to know following a very severe financial crisis with very high unemployment

historically, the e.c.b. do tighten policy when new orders are at 56. they're above that level.ink there's quite a high probability that political accidents aside, that we do see a preannouncement tapering in september and as people focus on that, then towards the end of the year, the german yield could ise sharply. jonathan: bart simpson saying must never short budden. must never short buddens. why can the market not become marquette the widow than it has for the last decades? >> last july, you would have made a lot of money. basically, the only reason to be -- to belong is there's a breakup risk and the probability of that at least for this year is overstated. emma: -- alix: the best example this five year here in the u.s. we've had short positions reduced but they're still double when they normally are. talk to me about the positioning versus the fundamentals. >> well, i mean, there are two forms of positioning. if you look at the barclays bond index, then the net long duration is the highest it's ever been for over seven years. if you look at the fundamentals for pension fun