3.74%. 2-year treasury at 4.188%. 2-year treasury closed at the highest yield since 2007 you have to go back to 2011 for the 10 year. melissa, we were talking about this before we came out. the yield is being driven by the central bank activity from other central banks. >> it is called super thursday the moves around the world in central banks with raising rates and what it is doing to the currency markets let's look at the currency and commodities. this is all part of the story. hitting two-decade highs bank of japan intervening for the first time since 1998. you typically sell u.s. treasuries to get u.s. dollars what does that do? you send yields higher that is one move we saw pre-market yesterday which is still unfolding today. >> that makes sense. you see treasury yields go up and you are watching investors look to the treasury market for the first time and think i can get yield locked in and promised there versus what is happening in the stock market. the dollar goes up central banks react. yields the treasury market go and investors say i don't want to be in equities. i want to

treasuries. it is not zero.t is positive in a decent way and most of these markets will become more domestic focused. domestic investors will have to underwrite their debt and be less focused -- their debt to attract overseas buyers. jon: does this mean depreciation in the currency or just keeping yields up? is that the story now for the europeans? george? we might have lost george con -- george goncalves. subadra? subadra: i'm happy to answer that. i agree. two george's point, you look at the attractiveness of treasuries or bonds or any of the other european sovereign bonds for japanese investors or any foreign investors, what you see is the return is not very attractive, so in some respects, if you are sort of relying on foreign demand for global bonds, then you are going to need to see much higher yield levels than where you are now, and a lot of it has to do with the sentiment. the currency, the dollar especially, has been extraordinarily strong, so you will need to see more concessions before you see foreig

we have seen that play out in wild swings in treasuries.ow do you price risk when the risk is in the risk-free asset? lotfi: again, i will come back to where we started the conversation. i don't think the u.k. playbook is something we should apply to other jurisdictions, but i think you stay up in quality, up in liquidity because of all the microstructure challenges we discussed. that is how i would look at it. jonathan: greg, your take on it? greg: as pessimistic as this program is, i probably more excited about the opportunities. the market is extremely dislocated. you are seeing high quality assets trading really quite cheaply. i think people are complaining of financial stability risks. it is high quality, the market is affording you the opportunity. take advantage of it. jonathan: does that include a 10 year at 3.75%? greg: it is closer. i will not claim that is the top, but you are a heck of a lot closer now. i think we are getting closer and getting more excited about it. jonathan: subadra, you getting excited about 3.75% ? subadra:

that would be another source of sales of treasuries.ani: sometimes i need to remind myself how strange it is to see things like aaa government paper selling off the way it is. these are usually havens that don't behave in the way that we are seeing right now. are there any signs that some of the selloff can slow down? >> the one song that is out there is you've got a lot of people invested and strategists saying that at least some parts of the government bond markets are starting to look attractive. there's a strong anticipation that all this is going to push places like the u.k. and elsewhere towards recession. when that's the case and you look at 10 year u.s. yields at 4% and you look at markets still reasonably confident that inflation will come down in the next year or two, those parts of the bond market further out, we have had jeffrey gundlach talking about how he's buying treasuries. citigroup is investing. jp morgan assets saying they are looking to add to longer term debt. as that chorus of investors grows and they start to buy

treasury yields have bee

the 2-year treasury is a little below 3.99%. the 30-year treasury is 3.55%.checking the shares of ford under pressure on the company's warning after the close yesterday that it expects to incur an extra $1 billion in costs during the third quarter due to inflation pressure and supply chain issues. ford says the supply issues are impacting 45,000 vehicles. primarily higher margin trucks and suvs have yet to hit doeale lots gm is down as well >>> let's get a check of the corporate stories with silvana henao. >> dom, a judge denying the justice department bid to stop united health bid to buy change health care. the two companies will move forward with the deal. change shares jumping on the news doj filed the lawsuit earlier this year aiming to stop the deal saying it would give the largest health insurer access to its data and push up costs >>> a group of states are asking for revival the lawsuit. the lawsuit featuring 46 states is challenging the meta acquisition of instagram and whatsapp >>> amazon entry in thursday night football is scoring big with nfl fans.

cracks the treasury department official says russia is feeling the effects of u.s. sanctions by being forced to use old equipment and its war with ukraine. the senate banking committee held a hearing on the effectiveness of sanctions and other deterrence, including a recent effort by the u.s. and other g-7 nations to impose a price cap on russian oil exports. this runs about an hour and a half. banking committee as treasury and justice department officials testified today on sanctions against russia amid its invasion of ukraine. live coverage on c-span three. today's hearing is in hybrid format, witnesses are in person, thank you, both, for being there. i know you have busy schedules, including today, thank you. members have the option to him here in person or virtually, as you know -- and jeopardized the future of a sovereign democracy -- weaponized food and energy sources, jeopardize the future of a sovereign democracy. his actions threatened global order, drawing a clear distinction between those who stand for democracy and rule of law and the forces of repressio

government, including prominently our colleagues at the treasury department. our goals are to bring charges against any individuals or entity, or-limited through congress department rulemaking rolled out in response to russian aggression. with respect to people and entities on those list, we will pursue any charge or seizure theory available. sanctions of asia and money laundering are obvious charges and theories in this space, if opportunities to bring charges on blank rod, visa fraud, extortion, or any other federal crime are presented as to a listed person or entity, that is a charge that this task force will support and pursue. second, we would target those who would facilitate the evasion of economic sanctions and the commerce departments export controls. who begs, real estate agents, brokered dealers, exporters, manufacturers, shipping companies and others, our goal is to shine a light were shanks and actors may other otherwise operate and shadow. our immediate focus has been on disruption of those individuals and entities who have aided and supported th

that was donald trump's secretary of the treasury and indeed every treasury secretary of my lifetime of both parties has has pushed for raising the debt ceiling. dr. scheiner, i'll ask you and just let me actually before i turn to dr. scheiner let me explain real quick about my legislation the debt ceiling reform act. it actually would not eliminate the debt ceiling but it would take it away from this increasing political dysfunction we see in congress. it would improve the mechanism and take away that catastrophic possibility of one day failing to raise the debt ceiling and plummeting us into a worldwide depression. if you want to describe some of the consequences that secretary mnuchin couldn't even imagine, if we were on the day -- one day to fail to raise the debt ceiling. >> so back in last fall -- i totally agree with you. i was not 100% sure we were going to raise the debt ceiling in time. it seemed possible we would step into the breach. we talked about what would happen if that occurred. there was a lot of uncertainty. clearly if we have an impact that -- an impasse that las

just look at treasury yields,, the selloff in treasury yields was due to the gilts.e risk for treasuries this week essentially is, there is an auction this week and we are looking at for volatility. so i think putting on risk at this juncture, in many investors' opinion, it might not be the best course of action just yet. rishaad: michelle, we have seen dollar strength. does this mean that the united states is exporting a recession to the rest of the world in the shape of inflation? because of course commodities are priced in dollars and they need more of their currency to i goods now -- to buy these goods now. michelle: michelle: we had been looking at the trend a while ago, and certainly those pressures have accelerated. post-jackson hole, we have seen the stronger dollar report through even more strongly to at the economy. the fed is not wont to talk about international pressures. they stress that their policies for the u.s. but at a time like this, they are certainly watching what is happening, especially with the pound and other currencies and what that might do

the treasury has written a blank check.uments seen by bloomberg expect this to cost up to 5% of gdp. the government does not home -- the government does not know how much it will cost because of the market. it is not targeted at the neediest households. it does not encourage people to be more efficient in their energy use. all that aside, liz truss has said it will be down to borrowing. the point is we are relying on the kindness of strangers to fund the uk's debt and this is a big worry. francine: that is exactly what mark kearney said. we will have plenty more from the bank of england and we will look at the pound and also the bank of ireland, semin soher power will be with us to talk about markets. that's up next. this is bloomberg. ♪ francine: welcome back to the open. 30 minutes into the trading day. rapid advances. ukraine's horses makes swift gains as russian defenses crumble. global stocks rise on wall street gains. the bundesbank voices support for more ecb hikes. and charles the third is officially declared king.

>> the treasury hit 4% earlier today.ttractive. >> karen finerman . >> we play this game at the end of every show. how much time is left? we nailed it to the second today. how happy he is. at final trade, yesterday, lucky. tomorrow, sell some higher strike. take a little money off the table. >> near to ear. >> 113 again. >> last time i said objects are bigger than they appear. that referenced the atlanta braves, now in first place along with the mets who play in chase stadium. i see you rolling >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money it's my job not just to entertain but educate and put days like today into sperspectiv so-call me or tweet me today, today, we saw this dream session. the dream of wha

get into treasuries and manage the treasuries, right? >> that be the most efficient.ay hey, i'm stuary varney, i've got a little money here what's your premium rate? go to the ceo of a community bank. they will pay u2 .5 maybe even 3 % so that's pretty good or you can look in some other areas such as sally may. if you go to sally mae website they are paying 2.25 and that rate will move up in the next week. stuart: let's suppose you have a long term perspective and by that, i mean, five or 10 years down the road. you can stay in for five or 10 years if you really want to. what's wrong with buying some of the big name stocks that have been thoroughly beaten down in the last few weeks? buy them now and hold them. what's wrong? >> well first of all, that premise is pretty tough because not many people can do that other than warren buffett, right so having said that though, what's wrong with buying microsoft here at a 52 week low and finally below a 20 forward p e? if you're looking to get into microsoft or consumer staple like walgreens so i get paid while i wait close to

the fed's training liquidity from the system, and that puts upward pressure on treasury yields. estate ratchet higher, it becomes more deeply negative. we have seen an acceleration of outflows from credit funds, and it puts pressure on spreads. i think the two are interconnected. arguably, the one area that has not gotten a lot of attention is quantitative tightening, and i think is the fed continues on a path of accelerated rate hikes, the russian becomes i will wait do we need to start pressing harder on that petal of quantitative tightening. that could be the next shoe to drop, so no question that the fed is working against us, but that will be a drag on equity markets and a drag on the credit problem as well. >>, stability is there in the markets to withstand a test that is been put up against it? >> we see market liquidity and depth thin. in a notable way, we see that in the treasury space and we see that across other markets, as well. that is due to macro uncertainty. none of us really know how far the fed is going to have to go. none of us know what the path of inflation

liz trusts— hole in the treasury budget. liz trusts -- — hole in the treasury budget.oment can't _ trusts —— liz truss at the moment can't possibly afford the promises that she _ can't possibly afford the promises that she is — can't possibly afford the promises that she is making, and that is before, — that she is making, and that is before, as _ that she is making, and that is before, as we just discussed, she has to— before, as we just discussed, she has to come — before, as we just discussed, she has to come up with extra money to help people pay their bills this winter. — help people pay their bills this winter, so it is a pretty grim set of circumstances that the new prime minister. _ of circumstances that the new prime minister, probably liz trusts, a small— minister, probably liz trusts, a small chance that it could be rishi sunak. _ small chance that it could be rishi sunak, whoever it is, is going to be facing _ sunak, whoever it is, is going to be facing a _ sunak, whoever it is, is going to be facing a huge economic headache. they are _ facing a huge econom

treasury note, 3.45%. the 2-year treasury a hair above 3.82%. the 30-year treasury at 3.5% in the oil market, we are seeing moves there as well. you can see right now with the moves to the upside for wti. up about 18 cents. $88.66 ice brent crude is up about a quarter. $94.33 a bit of stability in many parts of the market. >>> let's get a check of the trading in europe with julianna tatelbaum standing by in the london newsroom with the latest. good morning, julianna >> hey, dom. good morning let's chkickoff with asia. the shanghai pulling back 1.2% after the central bank in china left interest rates unchanged. outside of china, we did see green overnight. hong kong with 4%. nikkei 2.25. jim l similar move higher in australia. we got green signals this morning. dax is up .25% the real outperformer here is long the uk is the spanish market strong bid for the spanish banks after the government said it is open to modifying a proposed bill on the windfall tax on banks. we have the italian market trading higher

treasuries have the first year in history for them but we will slowly purchase treasuries, defensive needs as we get the next leg down in october. we only owned utilities, staples and a little bit of energy, we have no tax, no small-cap, no high data. we think those will be the names we will #in the first half of next year. that in my opinion will be a buying opportunity of a lifetime, and so bearish to be extremely bullish once we get to that time period. stuart: finally, eddie ghabour has seen the light of day and is beginning to agree with me that buying a 1-year treasury and holding it to maturity and getting 4% interest with a tax break is not a bad idea. you are coming around to my point of view. >> the thing with treasury, we will go longer on the curb because we will plan the fact that next year, because we will be in a bad recession, the long-term rates will go down and there's an opportunity to earn double-digit returns of appreciation on a boring long-term treasury so we are not playing it only for the yield but for the upside potential that we think is going to be there a

is it the treasury? but some point the military policy committee is going to get in there and say, hang on folks, we need to do something. so the bank giving the treasury in contradiction with each other and that's not workable. this is going to have to change. this is disastrous, or i want to leave it there. david blanche flower, he's professor at dartmouth college and former member of the bank of england. thank you so much. cool. thank you. let's go over now to our financial correspondent in new york. yes quarter. you heard perhaps what david just said there yet, but it's not just in england that this shock is being felt also in new york. what can you tell us the i mean in general, and for the moment at least it does seem to be mostly a british problem, but that could definitely a chain. so i mean for once the u. k is the 6 biggest economy on the planet. the pound is also part of the reserve currency. so that does have an impact. and then we shouldn't forget, markets are very jumpy. and general and any

the treasury that he seaks from that. the treasury that he speaks for _ from that. treasury that he speaks for is staying _ from that. the treasury that he speaks for is staying the - from that. the treasury that he l speaks for is staying the course. we can speak now to conservative mp for north thanet, sir roger gale. hejoins us now and hello, good evening to you. should the government the staying the course, ploughing on this bible we have seen today? find ploughing on this bible we have seen toda ? �* , ., , ploughing on this bible we have seen toda? , today? and you is absolutely right today? and you is absolutely right to hiuuhliht today? and you is absolutely right to highlight the _ today? and you is absolutely right to highlight the measures - today? and you is absolutely right to highlight the measures taken i today? and you is absolutely right| to highlight the measures taken by the chancellor to help us through the chancellor to help us through the cost—of—living crisis and through the energy price crisis. it is also right to say that there are a lot of v

treasury market. for more on what this signal, rick santelli is with jerome snyder who manages one of the largest actively managed etfs. hi, rick >> thank you, contessa yes, i'd like to welcome jerome. contestant a said something that i want to throw back at you. volatility in the marketplace, and you can hear the noise in the background, is ramped up a bit. but i certainly think that the trern treasury market i think it is the same market but something has changed. >> fundamentally what we're seeing is higher cost of capital in the marketplace transitory mechanisms which really help to allocate risks throughout the market have fundamentally gone to a higher cost of capital meaning that offers are wider, functional markets are wider so we're witnessing a recalibration from the low rate regimes into a more normalized one from the early 1980s or '90s. >> it is the great reset and it doesn't mean that the market is broken, it doesn't mean that the market is flawed it just means under the current conditio

treasury yields stabilize after spiking yesterday. the yuan drives as goldman turns more bearish on stocks. plus, christine lagarde says the ecb will only think about tricking its balance sheet once rates are normalized. -- shrinking its balance sheet once rates are normalized. francine: a lot in focus today and we have a fantastic story. the perspective saying that we have the worst bond rout we have seen intensifying. tom: that is rippling to the housing market, everywhere else on the back of this. essentially history making when it comes to the selloff we saw in gilt yesterday. it moved about 50 basis points higher on the front end, so we will see how it will open up in the bond markets. the ftse 100 posted a more positive day yesterday even though the european benchmark is lower. the beneficial -- international focus benefiting from the weaker pound. the spanish ibex currently gaining 0.7%. the u.k. sees gains of 0.2%. we are weighing up what happened yesterday stateside as well, talking about history making bond moves. you also s

. i done that they've lost confidence in the treasury-— the treasury.ence in the treasury, i lost confidence in the treasury, thatis lost confidence in the treasury, that is the point. look at the quotes that are coming from, you know, investors and people who are in finance. you know, you've got the chief financier of the bank of singapore is saying that the uk market is now resembling an emerging market is now resembling an emerging market in the sense that... the chief financial _ market in the sense that... the chief financial officer, maybe not the financier.— the financier. financial officer, correct. because _ the financier. financial officer, correct. because once - the financier. financial officer, correct. because once you've l the financier. financial officer, - correct. because once you've gotten into this — correct. because once you've gotten into this level of economic crisis, it is quite — into this level of economic crisis, it is quite difficult to be gain credibility, and that is what happens _ credibility, and that is what happens to m

that is a 12% yield with credit spread and where the treasury curve is. that is substantially above the a .5% now. there is a lot of thinktation in the market. we're not even in the recession yet. lisa: meghan, you work all day on investment grade credit post of how much more widening could you see on the weakness in the macroenvironment but offset by the strong position of balance sheet by a lot of corporate? >> from where i said, there's a growing bifurcation and clear disconnect between reactions we are seeing and credit markets. i think just try to reassess somebody's risk paradigm. i think despite some of the moves, if you look at what is playing out in the corporate index, 6.5 trillion dollar index, we've only seen a basis point of whiting this week in the midst of happening around us. -- widening this week in the midst of what is happening around us. most are pointing to the 5.25-year-old, 13 year high, primary driver of that outperformance. we have seen that feeling exist from buyer's turn to step into those types of levels. many are investors tha

treasury that has the responsibility to produce coin and currency? >> i think the leadership should come from the federal reserve. i also want to say that with the cbdc, i think that progress in this area is especially important because that is really where china can make a difference to undercut the dominance of the dollar. if the chinese cbdc goes forward, we'll see a very trng push toward a convertible reform n.b. which will make the chinese currency more attractive for investors. i would also like to highlight that with the cbdc, it's not just a china issue, it's a general issue. according to the atlantic council's we searched, there are about 104 countries that are currently exploring cbdc's. i think the real opportunities for the federal reserve to assume leadership in this critical area. mr. san nicolas: i'm still trying to come to grips with the idea that, what has historically been a treasury responsibility on the production of coin and currency will potentially become also a federal reserve power if they are authorized to do so with digital

there is a real collision course at the moment between the bank of england and the treasury.he expectation in the market is the growth directory and the treasury wants to put the economy on really hinges on the bank raising rates to correct. the bank may have no choice but to raise rates and raise them aggressively. jon: it is remarkable. you think back to the pandemic, when it felt like central banks and governments had at least a certain amount of alignment. here we are going back and forth. let's say hypothetically the government responds or continues to respond to any updates from the bank of england, i would imagine that the markets in the currency market in particular, have to react to that. guy: we have continued reaction. the bank has said that it will monitor the situation and will respond accordingly that is basically the just of what they said this afternoon. they're going to push back that response to november. that's a really long time away. is going to be interesting to see just how far the market is prepared to push the bank. there is another school of thought,

treasury rates surging.he 10 year at levels not seen since 2011. >> japan stages its first intervention, but it may not be enough to overcome policy. japan could ease travel restrictions, joining much of asia, with china the notable exception. >> let's get a quick expectations for the australian economy. this is what we have seen when it comes to tmi numbers. we have seen weakness when it comes to the pmi readings over the past two. we have seen monetary tightening. s&p global australia pmi composite number, the per luminary number for september, just rising to 50.8 from 50.2. pmi services also seeing a rise. 50.4 from 50.2%. that manufacturing element, 53.9%, just slightly higher than 53.8% in the per luminary september reading. let's get you straight to the markets and how we are setting up for this final friday. >> checking on the aussie, fractionally weaker. it is all down to central-bank action. even though we have traders now perhaps position for a 50 basis point hike for the rba, if we have a relative

treasury.once they register or whether they should register and i believe it's even if they don't register but they're legally required to, they have to comply with that. senator cortez masto: let me jump back, to because i do think senator kennedy, and i appreciate his willingness to explore, to understand the issue of e.s.g. and the requirement, my understanding, and thank you for your position and how you perceive that regulation, but because now we have a whole new generation of investors that are really conscious about green and going green, there are new investors now that are looking for ways to invest, to be consistent with their values in this role, correct? mr. gensler: there are. there are also investors just thinking because of climate risk it could affect the financial performance of a company, it could affect their supply chain, their competition and future regulations. they're thinking about how to value today that future transition risk. senator cortez masto: thank you. there wa

treasury market is looking at higher yields. 10-year treasury at 3.44%. 2-year treasury at 3.9%. getting close to the 4% level that we've been talking about for a long time. crypto has been under pressure 18,4 for bitcoin i'll talk more about the markets in a moment. let's go live to london where the funeral for queen elizabeth ii is beginning at westminster abbey. se steve sedgwick has more. >> reporter: becky, thank you. this is the first of three ceremonies this is the state funeral. later in windsor, the commitment service for the queen and private burial service members of the guards carrying in the queen's coffin and the standard and septre and crown. it made a short journey from the westminster hall to westminster abbey. president biden and dr. jill biden paid respects yesterday. the procession took a short journey to westminster abbey through the west gate. we see the procession followed by the king, king charles iii, followed by his sister princess anne and behind them is prince andrew and prince edward as well the four children of her majesty the queen. behind them, the

he will advise the treasury on the impact of sanctions on fiscal monetary policy. exchange rate financial markets banking investment energy and public debt departments emphasized that there is still a person not for compiling scientific reports, but for purposeful and practical work. as long as you continue to decide the race, how quickly you need to sink to abandon the national policy urged europe hungarian prime minister viktor urban said that it is economic restrictions that are the cause of the economic problems of the energy crisis and inflation in the region, if sanctions were lifted , prices would immediately fall by half , inflation too if the economy of europe had declined without a sanction, it would have recovered and could have avoided the impending recession, the head of the hungarian government noted that at the beginning of the summer the european bureaucrats. they promised that the sanctions would hit russia and not the europeans since then, according to the politician, it has become clear that the restrictions imposed are causing more damage to eur

i think what the market wants to see is more from the treasury.tement suggesting it would make things clearer on november the 23rd, but in market hours, thatis the 23rd, but in market hours, that is a very long time away. it is a long time away, but there is a lot of calculation to be done and a lot of number crunches within the treasury. if they are going to produce the detail that we all want and the detail that we all want and the markets want to show us some reassurance that this plan for growth will reap benefits without exposing the uk too much to financial risk in terms of how much it is borrowing. i suppose i could come back and say really they should have done that before they made the announcement last friday. that was one of the things that really upset, i think, an awful lot of investors. we have come accustomed to budgets that run alongside the forecast of the office budget of responsibility. they were not there on friday. instead, we saw this increase in fiscal spending which is a market very concerned about what that means and what

you have the 10-year treasury yield up. the move in australian bonds at the short end has been dramatic. that speaks to what's going to happen to trade markets unless we get something that will push back against that. the concern is this is letting the fiscal genie out of the bottle as it were. the idea that the u.k. will not be the last government to say, well, we are going to run a much bigger deficit because there are things going on at the back of inflation and monetary policy that we have to shift our fiscal policy and run bigger deficits. if that doesn't spread around the world, that signals a much higher bond yield around the world, not just the u.k.. dani: we are in this environment where it does seem like monetary policy can only go so far to curb inflation and on the fiscal side it does not seem like they are willing to do that. at what point -- we were just talking with mark about at what point would sterling mean foreign investors are willing to jump in. how high to u.k. yields need to get for foreign investors

jack: it might be time to buy long-term treasuries. i want to give you a specific trading idea from the chief economist who says to buy tlt and short goal, the ticker for the i share of the treasury bond. you get higher yield on shorter treasuries, people call that an inverted yield curve but you want longer exposure, high interest rate sensitivity and no way this economy will handle the interest rates suggested if you look at what is happening with inflation or what is happening with the economy, and those bonds will prove a good deal. the gold side is more complicated. it has been terrible historically. i am not sure it is possible with the mad max doomsday crowd now that they've gone over to crypto but more inverse with bond yields that have risen a lot, gold hasn't fallen like it should. you need to see yields come down or gold could crash by more than half, treasuries, the short gold works, my hedge is if it doesn't work, i know that well. jack: and then the bitcoin will be -- you have a contrarian play. andrew bary says they are

lizzy: i'm joined by mel stride, treasury of the treasury select committee.g kwasi kwarteng to allow the watchdog to assess the impact of the mini-budget but he says no, what is his excuse? >> he is saying this isn't a full budget and we need to wait until there is a full budget in the autumn. what we know is the measures we are expecting this morning are very similar to the fall budget. the tax measures alone are described as being the most significant since 1998. so this is a very major fiscal event. lizzy: does the lack of a forecast undermine the government's credibility? >> it makes it more difficult to underscore their credibility. there is no better forecast then the independent forecast of the office of budget responsibility. that is important for markets as we see pressure on bulky yields and on the currency. they want to know that whatever the chancellor announces this morning is done in a fiscally responsible manner. lizzy: we were speaking to former policy maker from the bank of england martin weale, warning there could be a run-up to the pound. >

treasury -- >> we should put into your treasury bond yields. quite the fan is committed.nk the fed is going to go over. >> that does keep the u.s. dollar supported. >> they will bring had -- bring down skyhigh inflation. more yet to come. >> that is the story. >> inflation has remained stubbornly high. they barely come off the highs in the united states. they have been tracked by bloomberg. they are expected to see another 500 basis points from the central banks that are meeting some pretty big ones this week. financial conditions have already started to tighten because central banks are tightening and bond yields are falling. that is what happens when you get 1300 basis points or more in one year. and when you see how that translates, this is what the fed wants to see. they want to see when you move on and look at financial conditions, this is what they want to see. we are also starting to hear some central bankers talk about what is necessary. jay powell was talking about the pain this will involve for small businesses. they were talking about the sacrifice ratio. this

people think she'd be a great treasury secretary and looks like she'll get that.r probably getting something. gary gensler the sec chair. if i were to bet, he wants to be treasury secretary and brian diez is likely to leave as well and head of the economic council and gensler can flick in if he wants a economic policy related roll inside the administration and diez is leaving as well and probably more shakeups and getting into the treasury secretary and huge staffs. it becomes a different economic ball game, and i think -- now, what does this mean for policy? i don't know. i mean, you know, biden has always run on being a centrist democrat and it's moving so far left with the picks and unclear if the treasury secretary has much of a role and unclear how big of a role brian diez had and advocate of esg and when at blackrock. that was his main roll at blackrock to push esg. it's unclear if this will mean policy changes, but it's definitely happening, people take the fall all the time when the economy turns bad and it's probably going to happen after the midterms. if

treasury that has a responsibility to produce the currency? >> i think that the leadership should come from the federal reserve. i would also like to say that for the cbbc, the progress in this area is especially important because that is where can make the difference to undercut the dominance ofna the dollar to put the chinese currency much more attractive for the international investors. i wouldd also like to highlight for the cbbc it's not just a china issue it's a general issue. according to the atlantic council research that is about 104 countries currently exploring cbbc. and is. think it's a real opportunity for the federal reserve to assume leadership in this critical area to be a responsibility on thens productn of coin and currency while will potentially become a federal reserve power if they are authorized to do so on the currency sphere. tit's about primarily one clarification that i would like as we already have a lot of digital dollarss in existenceyo that a system is primarily the federal reserve is primarily responsible for the

it continues a near to medium turn trend to the upside 2-year treasury about 3.53%. 30-year treasury below 3.49% in the crude market, the growth outlook for the world right now with prices higher u.s. benchmark wti is $88.79 that is a percent gain ice brent crude is $1.05 higher. in cryptocurrency, we are seeing bitcoin and ethereum prices show little movement to the down side after near-term strength bitcoin is down .20% you can see $1,718.34 for ethereum >>> let's get a check of the world markets with joumanna bercetche in the london ne newsroom good morning, joumanna >> good morning, dom the asia markets is leaning positive the shanghai is five basis points higher. concerns about covid lockdowns hang seng down a bit one stock in focus is nintendo after the rollout of one of the num new games. here with more solid footing ftse 100 in focus. up .20%. retailers are trading weak this morning. the stock pulling down the ftse 100. dax is up slightly numbers coming in moving higher. cac 40 is moving up as well. the grocer has cut its outlook expecting numbers to decline the british onlin

, iihink _ trashed previous treasury orthodoxy, iihink we _ trashed previous treasury orthodoxy, i thinkspending lar-e that kwasi kwarteng was spending large amounts of money, giving away so much _ large amounts of money, giving away so much money in tax cuts without really _ so much money in tax cuts without really thinking too much about what that does_ really thinking too much about what that does to public finances will stop it — that does to public finances will stop it is — that does to public finances will stop it is a _ that does to public finances will stop it is a growth or bus strategy, different_ stop it is a growth or bus strategy, different from what we have seen before, _ different from what we have seen before, and i think today it is clear— before, and i think today it is clear that _ before, and i think today it is clear that the distribution impacts are very— clear that the distribution impacts are very different, even from what we have _ are very different, even from what we have seen from previous conservative chancellors. rishi sunak — conservative chancellors. rish

that punished gilt markets and punished treasuries. euros swayze, we finally have europe exiting negative rates. even with a 75 basis point hike from the snb, the swissie has declined the most since 2015. and again, 142.24 after gaining with the boj intervention coming to the fore. let's get your check on asian markets with juliette saly. juliette: a public holiday in japan today but seeing a yield spikes similar to wall street reflected in the australian market, as it plays catch up after being closed yesterday. the two year up 26 basis points. the hong kong market holding at a to -- at a 2011 low. china's market under pressure, too. nomura cutting their 2023 forecast for china's economy, and a stronger than expected fix from the pboc is seeing a weaker offshore yuan. let's have a look at equity pain for asia because we are on track for a sixth weekly decline. when you look at rsi in equities, it looks oversold but you have seen huge drawdown in asian currencies along the back of king dollar. dani: it is incredible how the stronger do

this is bloomberg. >> former treasury secretary larry summers blasting u.k. economic policies.ernment is creating circumstances for the pound to stay past parity with the u.s. dollar. the currency pretty much flat after the boe said it would step in to calm the frenzied bond market. larry summers is back to share more. it's always a pleasure to get your perspective. your take on what the boe did today intervening at the long and the market. >> this was a market maker of last resort operation. given the severe problem we had created by forced liquidations associated with pension funds who had been hedging their long-term liability. i think it was the right thing to do given the technical factors that it risen in the market and it's obviously brought some important stability to the gilt market. it does not resolve any of the fundamental contradictions in british policy or address the tension between the anti-inflation imperative and the massive fiscal expansion of being engaged in by the british treasury at the ultimate need for tight monetary policies. if major inflation is to b

treasury market is looking at higher yields. 10-year treasury at 3.44%. 2-year treasury at 3.9%.etting close to the 4% leve

treasuries not seeing highs seen in a decade. >>> back to work with mixed reviews. new numbers on americans heading back to the office it's tuesday, september 20th summer is just about over. "squawk box" begins right now. >>> good morning welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. let's take a look at what is happening with the equities. things started out in the green early this morning 3:00 a.m now the dow futures have turned down once again. you are talking about a decline of triple digits for the dow 102. s&p futures off 16 nasdaq down by 61. yesterday at this time, we were looking at the futures in the red and markets did finish up for the day. if you are looking at the futures this morning, we were looking at a positive outlook two or three hours ago it turned at 4:00 a.m. we have been under pressure since. the big part of the story is treasury yields. yesterday, yields ticked higher. you saw pressure on stocks this morning, the 10-year treasury is