everybody wanted very short term cash for treasury obligation didn't want treasury bonds there were no buyers and it was a very difficult situation we went in and bought a lot. it wasn't in any way about meeting treasuries supply. it continues not to be we really don't think about that there are also u.s. treasury debt is an attractive asset around the world there's a lot of demand for our paper. really it was about market function it does have a positive effect on financial conditions too. you're taking long duration assets out of people's hands and they buy other things. it has positiv

treasury has been hard at work implementing cares act programs. ppp we have approved over 4.8 million small business loans for $519 billion. economic impact payments, we distributed nearly 169 million payments in record time. programs to support aviation and other eligible business we have approved and dispersed over 27 billion dollars to over 500 airlines and other aviation business, preserving hundreds of thousands of jobs. process ofhe documenting loans to business and critical national security for approximately $25 billion. the coronavirus relief fund, we have distributed $150 billion across states and local governments, nearly half of all in additional money to tribal governments. the cares act also granted treasury the authority to provide $454 billion to support federal reserve lending facilities under section 13.3. since march 17 using funds available, i have approved a number of federal reserve programs. the commercial paper program, primary dealer program, the talf, the secondary facility, main street facility, municipal facility, and t

of treasury.y of them go back into the finance world or go into the finance world, if they have not been there before. you chose not to do that. hank: i really enjoyed my business career. i had 32 years there. i had an opportunity to serve my country. what i really wanted to do was take my experiences and apply them to addressing two of what i believe are the most pressing issues of our time. u.s.-china relations and climate change. david: many people say that when you are in the finance world, you get on a merry-go-round and cannot stop making money, but you said, when you left treasury, i have enough money and i will go do the nonprofit things. is that right? hank: i never had what i called the disease or addiction to money. when i went to goldman sachs, it was 1974. the firm had had a couple of loss years. i was interested, in that time, in working on financial issues, working with clients. i was interested in markets. david: when you were at goldman, you were not a person who bought your own p

and i would defer to the treasury secretary on a fiscal matters here. >> okay. so you put it off on mr. mnuchin. you made some changes to broaden the liquidity facility, many ju jurisdictions like the territories are locked perhaps there's a way that guam may be eligible. did you find a way to take a serious look at that and determine whether or not something could happen >> yes, we are taking a serious look at that so the territories themselves are not investment grade rated and weren't before -- they were not before the pandemic set in and that's the minimum standard for access to the municipal liquidity facility of course businesses in the territories would be eligible for the main street facility some of the revenue-based facilities that guam has are investment grade rated but below the minimum and we're actually reviewing our credit standards in the municipal liquidity facility at the moment to determine if there's a way to adjust the facility in a way that would make eligible some credit worthy issuers without sort of violating the spirit or letter of sect

akes somebody secretary oft as treasury, hank, you did something unusual.any go back into the finance world or go into the finance world if they had not been there before. you chose not to do that. >> i really enjoyed my business career. i had 32 years there. i had not per two to serve my country. experiencestake my and apply them to addressing to of what i believe are the most u.s.-chinasues -- relations and climate change. when you left treasury, you basically said, i have enough money and i will do nonprofit things. had what i call the disease or addiction to money. sachs, itt to goldman was 1974. the firm had a couple loss years. in working oned financial issues, working with clients. i was interested in markets. david: you are not a person who bought their own private plane, you did not have a big house in the hamptons? >> we continued to live in the same house we built when i was making $36,000 a year. thati go skiing, it is arapahoe basin, not a place where fancy people go. david: is it your view that climate change is due to human activity? document

at the treasury department. as you know, secretary mnuchin looked very carefully at longer earlier -- maturities in this administration. it is not something that the fed plays a role in deciding. >> very good. thank you. i yield back. >> thank you. senator warner? >> thank you. it is good to see you, chair powell. i don't know if you saw, ben bernanke and 130 other economists wrote to congressional leadership and released a letter pointing out the additional need for stimulus and that we have a $16 trillion hole in the economy that needs to be dealt with. out hower also pointed enormously damaging the covid-19 crisis has been to communities of color. i think we saw that as well. we all applauded the main unemployment numbers. know, thel unemployment numbers for black americans still went up. if i think there is a common point, the great recession indicated a prolonged economic downturn will seriously damaging -- damage wealth accumulation for all americans. but particularly for families of color. a subject that

our emergency lending facility with the approval of the it shall treasury secretary. their affairs are discussed in my written statement. the fed will continue to use these powers forcefully, proactively and progressively until we're confident the nation is on the road to recovery. when the time comes, after the crisis has passed, we will put these emergency tools back in the tool box. i would stress that these are lending powers, not spending powers. i will also note that we design our facilities to work for broad ranges of businesses and municipalities. we do not target particular firms or industries. elected officials make decisions about where to direct such target relief. the cares act and other legislation provide direct help to people, businesses, and communities. this direct support is making a critical difference. not just in helping families and businesses, but also in limiting long lasting damage to our economy. public faith in our operations depends on transparency. if the fed were committed to that, particularly in deploying our emergency powers. thank yo

given the actions by congress, should we delay as i and my colleagues have called for and should the treasury examine the real life scenario we have gone through when kwuki inconducted study. >> i think that should be considered we are working on the study. >> the president issued an executive order with regards to each agenc looking at the rules, regulations that were waived, declined or whatever if they don't work now, why should we continue them down the road when we get out of this mess i assume everybody is doing that this accounting principle would fall in that area of we need to be looking at this as something down the road. >> i would agree >> thank you appreciate that. there's a time and place for rules and regulations and a time and place that are nonfunctioning when you start over with the nation recognized organizations, and the federal reserve emergency facilities, i know you heard a lot about this issue for members on both sides of the aisle chairman powell especially the fed took modest steps to include smaller nrsro and the most recent faqs but if they accompanied by one of th

at the treasury department. and as you know, secretary atchin looked very carefully longer and longer maturities earlier in this administration. so it is not something the fed really plays a role in deciding. sen. rounds: very good. thank you, mr. chairman. i yield back. crapo: senator warner? sen. warner: thank you, mr. chairman. it is good to see you, chair powell. i don't know if you saw, but former chairman ben bernanke of the fed and another 100 economists wrote the congressional leadership today, released a letter, pointing out the need for stimulus. we have a $16 trillion hole in our economy that needs to be dealt with. mr. bernanke's letter also pointed out how enormous leave crisis hase covid-19 been to communities of color. i think we saw that as well. we all saw it in the may unemployment numbers. theou well know, unemployment numbers of black americans still went up. i think there is a common point of evidence that the great recession indicates that a prolonged economic downturn will seriously damage

treasury.o, you know, u.s. -- you asked an interesting question earlier is there anything the fed can do to address the problems? and i think really the fed is stuck financing the u.s. government because of the size of the deficits. when you look at credit, however, you know, credit spreads now have been wider 40% of the time relative to u.s. treasuries and tighter or 60% of the time however you want to think about it. and that's a pretty normal spread for credit. i'm not sure that the fed is really finished in terms of what it wants to achieve in terms of tightening credit spreads. i think the jury is out there. and one of the big reasons for that is we have yet to buy any corporate bonds under the corporate bond purchase program. and in time, i think there's so much demand for credit at this point from the investment standpoint that we probably will end up driving credit spreads in and it will be upported by the fed. manus: scott minerd, co-founder of guggenheim. scott scott with hsbc, steven

first, we have steven mnuchin, secretary of the treasury. he has served in this current position since 2017. mr. mnuchin has testified before the committee on previous occasions and i believe he does not need any further introduction next, we have jerome powell, chair of the federal reserve bank system. mr. powell has served on the board of governors since 2012 and is chair since 2017. mr. powell has testified before the committee and i believe he does not need any further introduction so without objection, your written statements will be made part of the record each of you will have five minutes to summarize your testimony. when you have one minute remaining, a yellow light will appear at that time, i would ask you to wrap up your testimony so we can be respectful of the committee member's times secretary mnuchin, you are now recognized for five minutes to present your oral testimony. >> thank you very much mr. barr, let me express my condolences for your loss. chairman waters, ranking member mek henry and members of the committee, i'm plea

issuing a lot more treasuries than we ever were before. other countries are doing a huge fiscal expansion. there is still i think not enough supply of this paper to satisfy the growing demand from investors. thoseg as that is strong, safe havens will be probably overvalued. relative topensive their own history. romaine: fed ex earnings did cross the wire. four q revenue coming in above analyst estimates of 16.3. adjusted eps beating the estimate of 153. beating expectations. a lobar. these numbers are well below what the company earned and reported a year ago. in --did come caroline: revenue, $17.4 billion, it is a heat, but just shy of 17.8 this time last year. we will see how the shares continue to rally in after hours trade. that does it for "the closing bell." "what'd you miss?" is next where we will be looking at uber's potential purchase of food delivery competitor postmates. this is bloomberg. ♪ ♪ caroline: from bloomberg's world headquarters in new york, i am caroline hyde. romaine: this is "what'd you miss?" caroline: was it rebal

in the treasury

the 30 year and 10-year treasury yield going lower. i wonder how much the action today is really baking in the support of the federal reserve, coming out and saying we have your back with respect to asset prices until this economy gets going again. tom: let's get right to our guest right now. bob miller is with us. i know bob miller has an entire bookshelf loaded with --. he's read all there is. it is like "game of thrones," folks. bob miller, you were at bank of america. you have been running the ship at blackrock pushing a decade as well. have you ever seen this environment for fixed income? is this new, uncharted territory through the fixed income market? bob: good morning, tom. it depends upon your time horizon. , we have entered a new regime, but we haven't done this before in the united states. we have done it in other countries. i would argue we have crossed the rubicon with respect to cooperation,netary and there is no way to go back. the fed has essentially surrendered its balance sheet to treasury and will continue to do so i

i think to the extent we get some surprises in treasury issuance down the road, whereby perhaps the treasuryre in the back end of the curve than people are expecting, that could weigh on prices of long maturity bonds. you could have a steepening in the yield curve on the back of surprises in where the treasury issue is. in terms of the size of issuance , that is understood and will not have an impact on yields. to me what the most important thing is is how data performs relative to peoples somber expectations for data. our perspective coming out of our economics group, chet nayak, our local economist believes we will have better data than most are expecting. will see upward pressure on yields in the back end of the curve. you will see breakeven inflation rates expand alongside the upside surprise in data, and we will have a steeper curve at the end of the year. we need to get better data, and that will be the focal point for us. lisa: let's sit on this. this is important. the idea that 10 year or 30 year treasury yields could rise materially on better data. what we are pricing in is somethin

neutralize -- we would be diversifying away from treasuries.hing, europe -- i stick to the idea that if they can get if theyight this time, can lead to a significant investment plan going forward, we could see europe outperforming the u.s. in economic terms, but it will be touch and go. they've got a lot of bureaucracy to work are. if you look at the currency itself, it is pretty cheap against most major currencies, certainly against u.s. dollar and it is interesting in this risk on, risk off phase that the euro has bounced from its lows and is stabilizing at a level that is still cheap but when it is perhaps underlines the potential for the european economy rather than the threat that is coming through in the u.s. nejra: interesting nuance. great to get your thoughts. paul brain, newton investment management head of fixed-income. thank you for your time. facebook is under growing pressure as more companies spending tolash ad force a crackdown on hate speech. we bring you the details next. this is bloomberg. ♪ nejra: this is "bloomberg daybreak

treasury yields higher up by a basis point to .9%. on a 30-year, steeper curve, up two basis points. from new york, this is bloomberg. ♪ ritika: with the news, i'm ritika gupta. new york city starts to reopen tosmede new york city will allow construction, agriculture, manufacturing and wholesale trade to start operating again. retail stores can offer curbside pickup if all goes well new york could expand reopening in two weeks. more than 17,000 in new york city died from the coronavirus. an aggressive proposal from the minneapolis city council, a majority of its members say they support disbanding the city's police department. that comes just as the state launched a civil rights investigation following the death of george floyd. one city councilmember says she wants to "end policing as we know it." lawmakers say disbanding the police force starting a new one would be a long, complex process. the opec plus coalition extended its historic oil output cuts by an extra month but saudi arabia continued it won't continue with additional cuts

but is the treasury willing to stand by?standard, in which he was asked, "do you think the treasury gets the creative sector?" he didn't actually answer the question, so i'm asking you, does the treasury get the creative sector? i have to say, we have had very positive conversations with the treasury and extremely positive conversations with number 10 so far. there have been some excellent suggestions and we're threshing out with the treasury right now which will work, which can be delivered at pace, which can be delivered without massive overhead. you heard about the idea about the government acting as a kind of financial backer almost, a producer, rather than bailouts. you've heard about tax breaks, tax reliefs and, of course, the normal ideas around grants as well are things we're looking at. caroline dinenage. and that's it from me for another day in parliament, but do join me at the same time tomorrow for, among other things, the highlights from prime minister's questions. but for now from me, alicia mccarthy, goodbye.

treasuries this 10%, andowards long bonds 15%.s not bad for an asset class that is supposed to be value. jonathan: better than not bad, considering where we started the year about where the treasury supply matters. the supply matter for the long end? steven: the short answer is no. do you want the long answer? jonathan: i would love the long answer. [laughter] steven: there's not a client meeting where somebody doesn't talk about qe supply, inflation. there's no lack of demand. economics,5-year-old trying to map the supply curves and looking at the various shapes. look at the savings rate in the u.s. we are not exactly sure where it is. people are saving because they are unsure about the future. the money that gets saved gets recycled into bills and bonds through the banking system. this idea about supply mattering needs to be put in the context of the demand. i think that is being missed. it is really naive to look at one side of the equation. people look at the fed balance sheet and think that it has to be an inflationary sort o

as the fed talked, what does the ten-year treasury yield do? down 8.2 basis points. it was pushing above .9. it's now down to .47 -- .747 that is, yield on the ten-year treasury. as for the u.s. dollar, it has been weak of late. it hit session lows against the japanese yen and the euro after that 2:00 p.m. announcement. as you can see, off against the japanese yen. 1.27 against the u.s. dollar, the pound. the canadian dollar up. the euro up. of course, they were very weak for so long against the dollar but it's the dollar that's been slipping in recent weeks. take a look at the rate-sensitive financials with very low rates. you don't make much money on your loans. we are seeing all sorts of red. financials were kind of making a comeback but not recently. all the major banks moving lower. bank of america down another close to 5% at $26.90. lots to talk about. joining us now, andy brenner, nat alliance securities global fixed income head, also joining us, mark banner from bank of america securities. andy, let me begin with you. your first blush, what did you make of th

just this morning treasury released 35 oh e-one - - 35 oh eight forgiveness application. this is a step in the right direction thank you to administration for making this update. have either of you had a chance to take a look at the new easy form application? >> i apologize. i have not i was working this morning and came straight from appointments. but i did notice my e-mail from one of my colleagues said that it passed this morning by the sba. i have not had a chance to look at it. i'm sure is better than the 11 page document. but unfortunately i have not seeny it yet. >> i also was working i'm not had an opportunity to see it. >> i understand. doctor coleman, thank you it is by this we work with the healthcare crisis to understand the economic impact this had on the nation small businesses any written taste testimony between small businesses in philanthropy and ppe and the documents that you signed over the last few weeks sba and treasury would love - - with the relevant to ppe forgiveness along with the application itself if we have an opportunity to go through this ne

treasury secretary steven mnuchin talking to david rubenstein.ning us this morning is georgina taylor. i look at your positioning. selective credit and high yield has been good to you. listening to the treasury secretary, long the fed, long stimulus. do you double up on credit here? georgina: i think it's a risk. i think that everything they are doing from a policy standpoint is pretty impressive really around the world. i think what it potentially is missing is some of the structure balancing. a number of economies before the crisis even hit. one of those is looking at the strength of balance sheets and a lot of debt that has accumulated across the public sector, but the corporate sector as well. while we are quite happy with the credit exposure that we have, we are doing it in quite a selective and specific way in the portfolios. i think we would be reluctant to increase the assets we've had. secondly, it is a little concern that some of those balance sheets stresses do come back to haunt the market at some point and we've got to be very mindfu

market and you had prepayment speed pick up but you do support moving from an all treasury portfolio to a philosophical point of view. isn't that correct? >> yes. absolutely. i had no intention of ever buying a mortgage backed security line would you say that they're functioning and you're no longer needed to the same extent? >> i would say that. i also hasten to add that we're still on alert. well we're grateful for your leadership. thank you for being before the committee. i yield back. >> thank you. you're recognized for five minutes. mr. sherman. mr. green you're recognized for five minutes. >> he's muted. mr. sherman unmute. >> can i be heard? >> are you there? >> i'm here. >> let's go. we only have a few more members left for them to be able to ask questions. >> i hope that i can be heard. >> you can be heard. >> good. thank you for joining us. as you know they have written you about this and andy barr has written you a letter about this. there are 9 credit rating agencies for various purchases by the sec which has the expertise in the area. if the fed seems to put a premium on

the treasury secretary as part of the administration. and it is not for general fines. the tools that we are using our lending tools, not spending tools. we don't have the ability to make rants of money to particular groups of people no matter how directly they are affected. companies affected by the pandemic. that is a job for elected spending and taxation. it is not a job for officials like us. it is not a need to underscore the limits of the powers. authorities are very strong and that week like this you see how strong they can be. >> to make, let me say, to be paid back. with 100% certainty if there was such a thing in the world. you have been directed during the pandemic to make loans in places where a fed has not gone before and they are not 100% guaranteed to pay back. do you see that. does this worry you? >> at the beginning of this my colleagues and i needed to be using tools to the fullest extent that it would be hard to explain why we hold back from doing that at a time a 50 year low, in the unemployment space of 60 days, we saw economies around the world shu

the treasury secretary is technically in charge of handing out that money.on the massive financial relief bill to help businesses hurt by the coronavirus pandemic, donald trump and his administration promised that they would tell us everything about what happened to that money, they would account for every single penny. now they are refusing to account for that money, and it seems the only way we will find out how much money donald trump took from that fund for himself and his family and his friends, and how much of that money donald trump is still handing out to his friends. the only way we'll find that out is when and if joe biden appoints a new treasury secretary in january. joining us now is congresswoman katie porter, democrat representing the 45th district of california, a member of the oversight and financial services committee. congresswoman, i have a feeling you don't want to wait until the biden treasury secretary pulls back the curtain and reveals all of this. how can you find out before then? >> there is nothing at all stopping secretary steve mn

grant programs directly through the irs and treasuries. there are number of ways to do that beyond just having financial institutions as intermediary. creates a barrier for many businesses. >> thank you, madame chair. we recognize the gentleman from north carolina. thank you, madame chairman. ranking member, witnesses, thank you for joining us today or an important conversation on the paycheck protection program. room as ie committee have been the previous meeting. for having to task people disinfected but i do it for a very important reason, which is to emphasize we can be in washington. there are other people in this room, but we could be wearing masks, we could be doing business in washington and i think it would make your testimony more effective fortunately the hearing comes at as members have proceeded with another witchhunt , this time and at secretary mnuchin, administrator carranza, and lenders. program wesed the did it in a bipartisan fashion. last week, director of the congressional budget office praised the treasury department

treasury has been hard at work. economic impact payments we've distributed more than 170 million impact payments. we have aprived the dispersements of over 27 kbrinl to more than 500 airlines and other businesses improving hundreds of thousands of jobs. the coronavirus relief fund we have dispersed nearly all of the 150 billion appropriated for state, local and tribal governments. in doing so we have provided recipients with as much flexibility as possible under the statute. and we have committed approximately $200 billion in credit support to the federal reserve lending facilities under the cares act. that money is going to promote the flow of credit to households, state and local governments as well as restore liquidity and funding to markets. the federal reserve in consultation with the treasury has modified the terms of the lending program since they were announced ensure broad access to credit and liquidity. we have more than $250 billion remaining. in conclusion i am proud of the work we have done with all of

everybody wanted very short term cash for treasury obligation didn't want treasury bonds there were no buyers and it was a very difficult situation we went in and bought a lot. it wasn't in any way about meeting treasuries supply. it continues not to be we really don't think about that there are also u.s. treasury debt is an attractive asset around the world there's a lot of demand for our paper. really it was about market function it does have a positive effect on financial conditions too. you're taking long duration assets out of people's hands and they buy other things. it has positive affects at this time those are good too >> if demand from the treasury doesn't come back in coming months, what's the longer term implication for interest rates i know you're reticent to give any forecast on interest rates, which i understand, but give us a tone about the impact, the correlation there. >> there seems to be flying of demand for our paper i wouldn't want to speculate about what interest rates might do we're the world's reserve currency and in times of stress people want to own u.s. trea

the actual ten-year treasury it's the reciprocal. we're breaking out to the upside of this formation, and there's every indication there's more to come buy bonds, yields go lower chart three of four, this is the tlt, the etf the i-shares 20-plus year treasury bond etf, and you can see it's in identical formation to the treasury bond in chicago. and here, too, breaking out to the upside of the well defined pennant, flag, wedge, whatever you want to call it, higher. and then i have taken that chart, tlt, on the fourth chart and pulled it back a bit you can see the pennant formation, the context of the past four, five years. so basically, a period of equilibrium, a consolidation, and a reassertion of strength. >> thanks for that sorry, go ahead. >> mike, what's the trade here >> that's it >> so this is an interesting situation because as carter was just mentioning, there has long been this sense that the bull market in bonds was going to come to an end, that eventually, excessive borrowing was going to lead ohigher rates of course, all

leaves room for treasuries there. when you see positive elements on the data front or in risky assets, you should see the part of the curve steepen on the optimism. lisa: i've got to say, this market confounds me in many ways. if you have globally, countries selling loads of debt, it is going to slow roast going forward. economistst a lot of have been talking about. inflation expectations are basically flat. it is the steepening in the yield curve hinting at more inflation, or is this the return of on vigilantes? are you going to get people pushing back and saying your debt is not worth what you think it is because you are selling so much of it, and your economy isn't has strong? subadra: that is a very good question. i think for me, the focus is on inflation expectations. i think probably speaking, the 10 year part of the curve and beyond should trade very much in line with fundamentals. if you see a steepening of the curve, the twos-tens or the fives-30's, as well as an inflation expectation, i think that is a good

matt: what do you think about treasuries down below 70 basis points?ub: the big discussion with the treasury much more related to the shape of the yield curve as opposed to the outright level in yields. the communication from the fed has been quite clear that policy rates will be at these levels for quite an extended period. powell saying that the fomc are not even thinking about raising interest rates at this stage, and if we look at the dot plot, we have policy rates at the current level until the end of 2022, so there is extended forward guidance pinning the belly of the curve significantly and all of the action is in the backend, and that is where the discussion around the impact of the significant supply due to the fiscal expansion that we have had as a result of coronavirus, and possibly any very long-term inflationary impacts. that is what has been driving the backend. the big picture for developed market duration is we are in a low rate environment for an extended period and it difficult to see big moves in either direction. do markets need to

i am looking at treasuries. 10 year treasury at 0.8. european stocks down a touch, down 0.3%, tom.much. it is fed day. we are going to drive forward the conversation. lots of good guests. we have a wonderful 2:00 led by scarlet fu, including alan blinder of the fed. next, joseph amato. he's with neuberger berman group . are you in the equity markets are not -- or not? maybe he will give me the courage to make an investment in this stunning bull market we are in. futures next this morning. still some moments of energy there versus value. stay with us. this is bloomberg. ♪ save hundreds on your wireless bill without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you'll only have to pay for the data you need- starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. it's the most reliable wireless network. and it could save you hundreds. xfinity mobile. ♪ tom: this morning, mission ac

and sca and treasury apples as aside 10 billion in ppp funds to continue to land. this is the record of a successful program and i want to thank everyone, the secretary, the administrator, all the members of the senate and our members in the house and of course the president or not just passing this but working to implement it. i want to comment on the economic injury disaster loan program, the sca for the first time in history implemented a disaster grant program through an expanded version of this eidl program offering grants to entities suffering injuries due to the pandemic. to date the sba as approved 1.13 million owns, emergency loans totaling 79 almost $80 billion and 3.1 million emergency idle advances totaling 10.2 billion . the program has realized numerous challenges both previously responded regional disasters in the course under this current one and i raise concerns for the deficiencies of the existing program as a whole which only accounts for roughly 2 percent of the disaster loans by sba and in particular i was concerned it would be challenging for

in that nation what would attend what should the 10 year note treasury be should we be said and we could take this to japan's well i mean should or should the japanese 10 year note be 0 percent with a quarter trillion yen in debt to percent inflation you know you bring up i think point about mainstream media and how they treat this crisis and whether it's c. and b. c. or others that are in the mainstream who are seemingly purposefully obvious gaining the reality to carry the water for a corrupt austrian a crop central bank what when it really becomes obvious michael is when a situation like hurts the valley where the company is bankrupt and they plan on selling stock in a bankrupt company start going down before and the response by sandy same bloomberg wall street journal is to simply throw up their option say well isn't this novel isn't this strange instead of being like a regulator that way warn people against tainted meat or they found arsenic in the aspirin you know they're supposed to be on the consumer side to prevent the consumer fraud but they seemed their attitude be like well t

treasuries, up to basis points on tens.n important conversation coming up here on "bloomberg surveillance." 8:30 eastern, worldwide on bloomberg tv and bloomberg radio , the st. louis fed president jim bullard, coming up on "bloomberg surveillance." ritika: with the first word news, i'm ritika gupta. president trump combed markets rattled about -- trump calmed markets rattled about comments about the u.s.-china phase i trade agreement. peter navarro told fox news that parts of the trade deal were over. he set the comments were taken wildly out of context. mike pence is warning that more young people around the country are testing positive for the coronavirus. he made the remarks in a governors.call with abbott saysor greg cases are rising at what he calls "and on acceptable rate." hotels, pubs, restaurants and theaters will be allowed to reopen in the u.k. from july 4. was cut in half to one meter. the u.s. seeks an indefinite armed embargo on iran over its dropped united nations resolution. diplomats say the u.s. has share

treasury futures edging lower this morning.a close eye on that space given the bond rally overnight. it could be early to determine if this is the start of a major correction. a pick in high-frequency indicators across the economy. activity broadly remains depressed. we are getting data from new zealand. manufacturing pmi fell to 39.7%. kiwi stocks off 4.3% this morning. air new zealand, one of the biggest laggards in wellington today, sledding the most since march -- sliding the most since march 23. the aussie dollar slipping below low.olding below june 2 orei: we've got the iron price curve playing out in the story for australia. a boost in capital expenditures by mining companies. all of this set to boost a straw you's economy -- boost australia's economy. the government is staring down a huge budget deficit. to what degree do we go back to the old playbook of exporting stuff we dig out of the ground to help with that? 2009, we saw the fortunes of the mining sector as one of the key players in the australian economic recover

the dow is still down about 150 points we still have the ten-year treasury yield kind of drifting toward the lows of the session before the decision hit. steve, let me bring you back in here -- i'm sorry. we'll go back to steve in a moment we're running through the ten-year troishry yield. now just a mare john, is there more you would like to hear sorting through the statement? >> it looks like they have made a statement about continuing bond purchases at current levels i think that's a pretty big deal they had been tapering bond purchases, and i think what they're signaling today is they're not going to continue to taper that i think importantly they're looking for bond purchases to help keep yields supports low. this is part of the accommodative message. i think they're on their front foot here. from what i've seen, i think it's better than the market was expecting in terms of more accommodative, so i think front foot in terms of accommodative moment policy. that's appropriate, and i think that's my initial read >> again right now the dow is extending its decline somewhat, and the ten-

well, probably the secretary of the treasury has a bully pulpit.rms of the relationship, i think it is much more with the fed and banking regulators. i do think we need to have better clarity around what is the role of banks. banks have special deals with the government. they have access to lending facilities. tradingstment operations are benefiting a lot now from all that the fed support that is being provided to financial markets. they have a special deal. but with that, a special obligation to support the real economy, especially during downturns. part of that is making sacrifices like shareholder dividends and discretionary bonuses when you get into a discretionary basis like this. making sure bank leadership and bank culture understands that they have an obligation to return these benefits they get to the seven -- two the government safety net. i think banks were hoping that this would -- this crisis would help rehabilitate them, but i don't think this is happening at all. i think the d regulation is making people more cynical. the huge divide

treasury futures were helping those entities unwind what turned out to be a bad trade. become very leveraged and they are big enough to be systemic, but there needs to be regulation to real that in. lisa: what kind of regulation could the fed push for from other government agencies that you think would be appropriate from the hedge, from private equities, from some of the investment firms that have benefited from the fed programs and will probably continue to, based on what they have pledged going forward? william: one thing the fed could do is say there's got to be a limit on how much leverage you give them. the other thing would be money mutual funds. we have mutual funds that are invested in very illiquid assets. that andould change see if you are invested in illiquid assets, you have to offer monthly liquidity. that would also reduce the risk of a fire sale. what the fed really wants to episode the kind of where people have to dump lots of assets into the market, and there's no buyers, and that distorts markets significantly. to maketo avoid that is sure that people

we purchased a lot of treasury securities, to get that market working again. the short-term money markets, which are systemically important to many private corporations, they stopped working. so we did some facilities there. and returned to the provision of credit, to corporations, and to municipalities and states. that is something we had not done in modern history at all. but this is not the global financial crisis. that was about weakness in the financial system. this time the financial system is a good shape, relatively, with strong capital and better risk management and high levels of liquidity. this was a problem in the real economy, in the private sector, of companies not being able to finance themselves. so we announce the setup of a facility to backstop that market. as we backstopped these markets, even before we began leading, they started to work again. there's a confidence factor we have seen in real force here. it was a remarkable time. it is a great honor to serve in these jobs. sometimes they are not easy. but we never forget how important it is

first, we have steven mnuchin, secretary of the treasury.ed in this current position since 2017. mr. mnuchin has testified before the committee on previous occasions, and i believe he does not need any further introduction. powell, have jerome chair of the federal reserve bank system. mr. powell has served on the board of governors and's 212 and is chair since 2017. mr. powell has testified before the committee. i believe he does not need any further introduction. so without objection, your written statements will be made part of the record. each of you will have five minutes to summarize your testimony. when you have one minute remaining, a yellow light will appear. at that time, i would ask you to wrap up your testimony so that we can be respectful of the committee members time. secretary mnuchin, you are now

note be right now it's 70.7 percent what did she and your treasury don't beat on it's also remember back in march it was we re percent and shot up to one percent where people started losing faith in the solid c. of united states so if you have an insolvent nation and you have a 2 perhaps you 2 percent inflation target. in that nation what would attend what should be a 10 year note treasury be should be 0.70 you take this to japan's well i mean should should the japanese 10 year note be 0 percent with a quarter trillion yen in debt and it's you percent inflation you know you bring up anything plain about mainstream media and how they treat this crisis and whether it's c. and b. c. or others that are in the mainstream who are seemingly purposefully obvious skating the reality to carry the water for a corrupt washington a crop central bank what when it really becomes obvious michael is when a situation like hurts the valley where the company is bankrupt and they plan on selling stock in a bankrupt company stock been done before and the response by sandy same bloomberg wall street journ