lord of the treasury and the second lord of the treasury and the second lord of the treasury, in otherg in more than that letter injust a few will bring in more than that letter in just a few moments. let me talk now to the political correspondent at the financial times. alsojoining us as the chief political commentator at times radio. forgive me for giving you hanging around. let's not first of all, if you can, what do you make of this morning's events, and what liz truss has to do this afternoon, as it is here in the uk, to not give the impression that she is in a panic, and that this has been a panic reaction to events, and that she is not in control of things? tt that she is not in control of thins? . , that she is not in control of thins? ., , that she is not in control of thins? ., i, ., things? it has really been an extraordinary _ things? it has really been an extraordinary day, _ things? it has really been an extraordinary day, and - things? it has really been an extraordinary day, and this l things? it has really been an | extraordinary day, and this is things? it has really

we have the most diverse leadership team in treasury's history. we have hired our first counsel for racial equity and we have recently established new office of tribal and native affairs and appointed members of the treasury advisory committee of racial equity to help make progress. in these efforts, we have no greater champion than vice president, harris --kamala harris. she helped -- and since the first day of this administration, vice president harris has been the true partner in our work to build a more equitable party and country. she announced formations of the economic opportunity coalition, part of a historic effort to align private and public investments to accelerate inclusive growth. she has investments to reduce -- infant mortality. she has led efforts to rule out -- roots out -- more broadly, she has spearheaded the administration's coordinated approach to racial equity, ensuring that it is the cornerstone of everything we do. we have had -- but that, i am proud to welcome to treasury, the vice president of the united states, come all

thank you for joining us at the treasury. two months before the end of the civil war, senator charles sumner championed the bill to create freedman's savings bank. the objective of the bank was clear. a savings bank institution created for former slaves and their descendants. as frederick douglas, who later led the bank said, the mission of fieldman's bank is to show our people the -- of wealth and beg being of the world. president lincoln signed it into law a few weeks before his death. the bank grew quickly. opening in 38 branches across 16 states yet all of us know the legacy of fieldman's bank is one of tragedy. overwhelmed by the panic of 18 3 combined with mismanagement, a general loss of trust in the institution and a systemic failure to invest in formerly enslaved and free blake -- freed black communities, banks closed. it created an economic night mirror for those who had entrusted the bank with their hard-earned savings. we're still living with the reverberations of not meeting the aspirations of senator sumner and

treasury saying, can we restore market function of u.s. treasuries as a whole. jonathan: do you think that would improve liquidity and with that have to be done in a predictable manner, at a set time, place, amount? how would you execute it? priya: i think the devil is in the details. i would say a more regular backstop and a that exists and that the offset it not bite issuing more bonds because there isn't enough demand for twenty-year, there is a scarcity of people in the front end. if they want to keep the big window, have a window for a while and come in when you need to buy and be clear at what time of day. as much pretty debility as they can provide, keeping a window open and offset it with supply. that is the way i would structure it. it will be when it is announced and will it happen. it is a big lift. it happens two years from now, it is too late. i think it has potential for improving market functioning. i think they have to do something with dealer constraint. i think it takes the risk away that if there are false liquidations, where should that be an

the idea that there won't be that much demand for treasuries. walk us through where we traditionally see it in where we will see it right now. >> over recent years, the fed has been demand buyer number one and they are kind of getting out of the business of buying debt. they are rolling out their balance sheet and commercial banks were huge buyers. as the fed was doing q. week, it was bolstering their amount of reserves and buying treasury. foreign demand has really been falling off partly as you have been talking about the strong dollar and we have central banks intervening. those are the big players and they are going opposite of what you want if you want yields to fall. kriti: lori, let me bring you in here because i'm curious what that means for the broader economy. when you're talking about perhaps the slower demand and treasuries probably, does that mean the rest of the world is not feeling as confident or a strong on the u.s. economy? is that fading a little bit? >> i think it is relative to its peers. when we look how it is performing re

and to a certain extent in the treasury market.e are repressing the fed, qt, how unstable is this market and do we need to worry? ira: i think we have to worry a little bit because liquidity is significant numerous that it has been in the recent past. in large part that is because of the uncertainty that you note. there is also the inability for a lot of market makers and other potential intermediaries to take risk. we have a market that is significantly larger than it was a decade, even 15 years ago. the purchase agreement market, the other markets, the plumbing for the treasury markets, have not grown nearly as much. if you look at the funding markets as a share of the treasury market, they are the lowest they have ever been since the 1970's. i think part of the reason you see this volatility is you don't have smooth functioning in the treasury market as you used to have. the uncertainty just helps to exacerbate that. alix: jp morgan talking about who's going to buy with the fatted not in it. as globally we see central banks tigh

bank of america has been warning about treasury market. "lewis -- u.s. treasury deteriorated. the market is fragile and vulnerable to a shock." the treasury breakdown is not able case -- base case but it is a building tail risk. i do wonder how much this is almost a balanced market. i know this is a strange counterintuitive thing but what we saw today was bond yields surge to the highest levels in the u.s. back to 2007. the dollar was strengthening, the end was weakening to levels we are not seen since 1990 end all of a sudden, don't call it yet intervention but all of a sudden it started to strengthen and people are wondering but it looks pretty much like it rhymes with intervention. how much do you have to see capitulation from global policy makers a way that really caps off are things can go? vishwanath: i think the capitulation you are seeing is from the bond investment perspective. i think there is -- if you look at the performance year to date, given how double-digit negative are across-the-board, it is a lack of risk appetite to engage in the market that shows up in the

this is a treasury up to the ceiling, gold heard an explosion, maybe this was the entrance to the treasury at all. well , i told you ghosts in castles. still, there are two red dots on the radar confirmation of this. perhaps it was a black panda and a white lady who decided to meet for afternoon tea. he says that often they do not bother people and appear only to warn of danger, but this time it worked out. the statues of the 12 apostles were presented in the vault, they were made in human growth. yes , imagine their size of gold and silver and silver. true, they say only a blow was made. it was not in vain that i came down here, because right behind me the door is not a simple one, it is a treasury. i looked into inside, and there, in the second half of the 18th century, the treasury was guarded by karol stanislav raddivil, nicknamed the memory of the kohanka, and he loved to live in a big way, what do you think of these twelve apostles, he managed to lose, and then again, uh, he lost to redeem them into cards. locals say that once upon a time, in those distant times, they heard an explos

it is very close to the 10 year treasury.ompare that to june when the aussie 10 year was about 90 basis points above that. perhaps we are entering a new era. shery: we continue to watch treasury moves closely. we are seeing liquidity worsening and price swings being very pronounced. talking about the 10 year yield, back above 380 and rising for a second session as we continue to see more hawkish rhetoric from the fed. even now, loretta mester is speaking at an event saying job one is getting inflation down and the fed has more work to do to reduce inflation. we had seen the s&p 500 lose ground for a second session. most of the sectors are in the red and we continue to see downside in u.s. futures. the only sector that rose today was energy. not surprising. we are seeing wti continue to gain above the $89 per barrel level after the announcement that opec-plus would be carrying out the biggest production cuts since 2020. let's bring in our global economics and policy editor kathleen hays and contributor garfield reynolds. kathl

the us treasury is seriously considering a plan to buy back its own debt.l is to prevent debt market dysfunction in the against the backdrop of rising inflation and the tightening of the fed's policy of liquidity in the treasury market. almost evaporated. but this is the largest market in terms of volume in the world and in many respects the american economy rests on it, but the current crisis, there is nothing special in it, there are no safe haven assets, and the us national debt, which has always been a safe haven, is rapidly depreciating in the us treasury. it has already been announced that consultations with primary dealers will begin at the end of the month, and the opportunities for dealers to start buying back part of their old debt obligations are large banks that have the ability to conduct transactions directly with the treasury and help the authorities distribute securities. this idea has been nurtured on the market for a long time, but given the current catastrophic market situation, the likelihood of launching such a software is extremely hig

could there be a recession absolutely that's what the treasuries do. if we don't get it or we get a mild one or it's very narrowly focused in certain parts of the market, credit offers a significant value. so, that's why we're so excited about the bond market. look, looking in the rearview mirror, it's been ugly looking forward, it's the best opportunity we've seen over 12 years. >> yeah, really dramatic repricing in just a few months across the bond market appreciate your thoughts today thank you. >> thanks, mike, for having me >>> well, after the break, would you buy snap after another rough quarter? we'll get the bull case from an analyst who's maintaining his outperform rating on the stock and we'll also talk about the read-through for names like meta and alphabet you're watching "closing bell" on cnbc. ♪ icy hot pro. ♪ ice works fast... to freeze your pain and your doubt. ♪ heat makes it last. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers. as a business owner, so you'll never sit this one out. your bottom line is

i called at about a 4% on 10 year treasuries. jonathan: we are going to talk about -- coming up on this program, the auction block. regaining momentum and more productivity. that conversation, up next. ♪ at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. jonathan: live from new york city, i'm jonathan ferro. this is "real yield." now we kick things off in europe. 70 billion euros of debt sale -- of that ending. another slow week and a high-yield. a canadian energy company was responsible for the only debt sale this week, $625 million. pgm seizes birds starting to move closer to fair value. -- sees spreads starting to move closer to fair value. >> earning expectations are coming down. margins are getting compressed. are we going to have a big increase in defaults? unequivocally, no. are they providing really attractive yields? absolutely. jon

treasury orthodoxy is simply the treasury reflecting to you market orthodoxy, get into a huge amountwant to test that theory in this country, we have kind of done it now, haven't we? we have tested it and it turns out you can't. if you want to borrow money, they still determine how much it is going to cost you?— going to cost you? yes, and the --rosect going to cost you? yes, and the prospect of _ going to cost you? yes, and the prospect of government - going to cost you? yes, and the prospect of government having | going to cost you? yes, and the i prospect of government having to going to cost you? yes, and the - prospect of government having to go and borrow huge amounts more money has clearly spooked the markets. we have seen the rise in interest rates. the real problem for the government is you get yourself into something of a vicious circle. the less the markets trust you, the more they demand from you to service your debt. the bigger the cuts, the bigger the tax rises you have to get you to re—establish fiscal balance. they have got themselves into a bit of a mess now. the int

it's the illusion of liquidity in the treasury market where the treasury market is fine and looks fineall of a sudden, there are one-way slows that can be absorb because you hit this wall where there is no balance sheet among financial institutions and then you get massive volatility. i think is the fact that now it's the markets themselves that have to observe volatility as opposed to the financial institutions which is basically what often happened prior to 2007. alix: i can't tell of it's a or bad thing in the -- in the long term. when does the guilt crisis and? - end? or will this be a rolling about volatility? >> the ldi thing, there is no direct contagion effect or it's limited. it's representative of pockets of leverage is that will topple over the world and we will start to see them pop one by one. i think one part of the u.s. were potentially you could see that coming out is copper. -- the corporate sector. it has been rising in these companies have been buying back stock and paying out dividends. they been raising money from the market so i think that's one particular area in

treasuries.s on domestic buying, retail buy-in, and clearly, the risk of volatility is higher. i don't think the u.s. has an ldi type problem is the u.k. has, but i think the risks are still there. rishaad: what does this mean really? it is very rare that you get the treasury secretary, janet yellen, coming up and admitting in public that she is worried about a loss of adequate liquidity. she did ask her staff to do something quite remarkable as well, they asked the treasury bond auction committee if the government should start buying some of those less liquid securities out there. this is a telltale sign, surely. >> it is. i think that is absolutely right. it does show there is an increasing concern within the treasury, yellen, of course, and the fact they are having to resort to announcements and discussions clearly says the alarm bells are starting to ring in the administration, so i think there is clear concern. as i said, i don't think we're there yet. we are pretty far from any type of liqu

while the treasury are clearly _ the treasury. while the treasury are clearly not — the treasury.g him, markets are not enjoying him. are not enjoying him, markets are not enjoying him-— are not enjoying him, markets are not enjoying him. not en'oying him. absolutely. that bi . not enjoying him. absolutely. that big question _ not enjoying him. absolutely. that big question for — not enjoying him. absolutely. that big question for the _ not enjoying him. absolutely. that big question for the conservatives, evenif big question for the conservatives, even if they could band together to agree a unity candidate to take over at number 10, agree a unity candidate to take over at number10, is agree a unity candidate to take over at number 10, is it possible, is it likely that the public in this country are going to accept that internal stitch up without being consulted? i internal stitch up without being consulted?— internal stitch up without being consulted? . , . , consulted? i thinkjames cleverly ut it consulted? i thinkjames cleverly put it quite _ consulted? i thinkjames cleverly pu

alix: we had pretty weak demand for treasury auctions, complaints about liquidity, treasury securitiest you could buy right now are trading lower than the past. are we operating properly and does the fed need to tweak some stuff? meghan: apart from the data this is the key theme that investors in the treasury market are focused on is market liquidity, market functioning, who will be buying all of these treasury securities? we have the fed longer the market. the investor base previously strong to the last year, foreign investors and banks are not of the treasury market right now. if you think about your portfolios you are in this environment where equities and rates are selling off simultaneously. that hedge that they provide when you are looking for that risk-free asset is no longer there. this means there is just more volatility in the treasury market. the fed is monitoring this very closely, i can tell you that having worked there myself. this is something that the fed is extremely focused on. for right now, it means they will continue on the path of qt but if you continue to see the

this imagined 18 trillion treasuries trading at negative yield -- just imagine 18 trillion treasuriesrading at negative yields. i was just a year or year and a half goat or not we can earn a healthy rate of return. bottom line is it is going to beat the golden era for credit investing. guy: you sound excited. what kind of a year are you going to have year? -- next year? bruce: is a tale of two cities. if you -- on a commutative basis to 10%. it does mean that 90% of high-yield loans and bonds and will receive structured credit and emerging market debt, a percent of that cohort is good money quality. you can earn that higher rate of return. we will make a healthy rate of return in the liquid markets. in is the private credit markets, we will have the most active period we have ever had in lending because the rates were not making these loans. the second part is the dry powder we how to calculate all the distressed cycle, which is beginning sometime in the second quarter of next year. with that winter is a recession in the first quarter of next year. that will bring in a lot of amazing

going to go to a treasury outsider. antonio romero now gone to a treasury in cider, whereas she's always back to the so called treasury orthodoxy. so she does seem to be raining things in slightly, but it's problematic. i mean, she's in a very unpopular position. i think it was on her rating of minus 41 and be so unpopular. so quickly, i'm stepping in to not a comfortable place debate. i want to leave it there for now. hope hillary ingram at lancaster university. thank you so much. thank you. bye. all right, that's it for me and the d. w team. you can always find out more about these and other stories online. check us out a w dot com slash business. we're also on youtube or the d. w. news channel. i've seen beardsley watching with a pulse, a beginning of the story that moves us and takes us along for the ride. it's all about the perspective. culture information is dw and d, w made from mines. oh, we're all good to go beyond the obvious as we take on the world. i do all the fans, we're all about the story that matter to you. whatever it takes. 5 police, my phone. ah. you know, we are, you

the 10-year treasury holding above the 4% threshold 4.1% on the 10-year treasury 2-year treasury at 4.58%arket on the back of the spr announcement brent crude is up $93. >>> let's get a check on the top stories with silvana henao who is back with those >> good morning, frank meta facing departure of the high profile executive within the company. announcing on his facebook page he was taking a break after more than a decade with the company writing in part strategic technology deal work is intense. he played a key role in the acquisition of instagram and whatsapp and oculus. >>> the biden administration announcing nearly $3 billion of grants to help produce batteries for electric vehicles in the u.s. the money is coming from the infrastructure bill. it will go to 20 companies and focus on battery grade materials, including lithium and graphite and nickel. the act allocates $135 million >>> and waymo will begin operating in los angeles it is not clear when that will start. waymo only operates in phoenix currently. the company has faced criticism for the slow progress and offering the public

i'm looking at the 2-year treasury and 10-year treasury.erted does this get >> we start at the short end we heard a number of the perceived hawkish fed speakers in the last week at least two of them mentioned 4.50 as the landing spot the 2-year treasury note implies up to the 4.50% level. the front end, we are getting to peak hawkishness in a sense assuming the fed speakers do what they said the 10-year treasury is cheapened to the 4% area on the chart, a couple of technicals in the area and it is a psychological nice round number 4%. similarly to what we see in the equity market. the deep oversold conditions you get the same set up in fixed income not just the u.s., but developed markets as well. we think they are backing up to re-test the high yields put in a couple of weeks ago. it seemed like a blow off yield type you will not sustain much of a move through 4%. you will set up for a rebound as we move to the fourth quarter. that is unique for our generation or generation before that you spexpect the inverse relationship if it is not the

and, you know, i'm sure that's what the treasury team will, will lay out in the weeks to come.t's important now at this period of volatility that the bank and the treasury stick close together. and they seem to be doing that. which is great. i'm sure, you know, it's not my department, but i'm sure treasury will be explaining in the days and weeks to come what the plan is. and this is something you clashed with the previous chancellor in cabinet. now, normally we don't get to know, but we did learn. kit malthouse, we read took rishi sunak on in the cabinet said where's the growth plan? where is the plan for looking again at spending? well, i mean, i obviously can't comment on cabinet. you'll have to see the minutes when they emerge in now 20 yea rs. we've shortened it from 30. so you don't have long to wait. you can tell us if the report is rubbish, which i know you're not doing. if you look back at my record, i've always been a kind of low tax tory. i do believe that strongly that giving people autonomy in their life also means autonomy over their finances to make choices for t

the 10-year treasury now trading near the highest level since 2008 yielding 4.27%. 2-year treasury at%. energy is the only sector down less than 10% from the 52-week high oil continuing the downward move brent at $91.60. down .80%. wti down a bit more at .90%. >>> let's get a check of the other top stories with silvana henao for those. >> seema, good morning twitter is reportedly firing back at the report from the washington post for company wide layoffs once elon musk completes the takeover deal. the company has clarified to staff there are no plans since it signed a deal to be bought by musk the washington post reported that musk would reduce by 75% from the current 7, 500 employees. shares of twitter are plunging in the pre-market as you can see. down nearly 10%. >>> instacart is hitting pause on the plans for ipo this year according to the reports, the firm's ceo revealed the decision in the memo citing market conditions making public offerings tough. instacart filed for paper work for ipo with the s.e.c. this year and still look to be on course to debut on the markets this year.

your taking a look at liquidity stressors in the treasury market. haidi: of course this is a huge a story and a huge concern that is growing a lot of treasury market watchers, given that it is a benchmark by which we are taking a look to the lens from every single sovereign market. the liquidity prices that may be building is is exposing the fed to its biggest nightmare because we know the fed can be forced into tih -- this, but given we are expecting to see tightening, that is going to be counter to the overall direction of being able to tighten financial conditions. we have seen volatility globally high knee concerns about what -- heightening concerns, bout regulators failures to dissolve liquidity. it is making it harder to make these big trade and treasury. we're hearing from evercore, isi. they are characterizing this as troubling deterioration in treasure market liquidity. we are watching for any structural market reforms that could come next week. shery: the pecan yields we saw today, coming from one of -- the peak in yields we saw today, it

look at the bond market. 10-year treasury still at 3.84%. 2-year treasury above 4% at 4.26%.moving higher let's look at oil. a lot of moving with the opec decision $88.89 for wti brent crude at $94 the sector is the only one that ended yesterday in positive territory and on pace for the best weekly gains since november of 2020. look at that some of the biggest gainers are marathon and har bliburton and devon. big moves in energy. exxon is not up as much as the broader market it is up 17% this week opec decision clearly fueling markets. >>> let's get a check of the top stories with silvana henao good morning >> good morning, seema the cannabis industry and investors applauding president biden's decision to pardon thousands of people convicted of marijuana possession canopy growth says this is an acknowledgment that cannabis prohibition has failed and too many lives impacted as a result. shares of the cannabis company surging 22% following the announcement climbing further in extended trading, similar story for other pot stocks >>> the world's largest cryptocurrency exchange hi

treasury yields falling back. media stocks, meadow flags concerns around the outlook for ad spending. it has been a major concern this week. this is another sector very much in focus. >> singapore's central bank chief says officials have done a decent job of allowing markets to absorb shock from monetary tightening. speaking with bloomberg, they urged peers to remain vigilant if the dollar appreciates more rapidly. >> there is always a risk that it gets out of hand and the exchange rate depreciates to rapidly and leads to a lack of anchoring of confidence in the economy. a lot of things can happen when an exchange rate moves too fast, too far. but i think so far they have managed it well. but if the dollar appreciates much more rapidly than this, yes, we would have to be concerned. >> antony blinken has accused china of trying to speed up the seizure of taiwan and told bloomberg china is undermining the decades long status quo that has kept them from going to war with the u.s. over the island. vladimir putin is ov

treasuries as they deal with their own domestic issues. treasury liquidity has been issue. we seen that from a volatility standpoint with the move higher, we are seeing it just in the day to day movements if you are in investor with treasuries, you are seeing spikes nonstop with two-year treasuries hitting a new recent high. that is our theme going forward. it's tough to see volatility come significantly down when we are seeing those factors and the fed stepping back in the global central banks stepping back in a situation when growth is slow and inflation is high. kriti: 459 on the two year yield. they are pricing in a 5% policy raise in the first half of next year. we thank you for being with us. still ahead, we will hear more about the u.k. turmoil from the blackstone president and coo. first, time for first word news with mark crumpton. mark: former u.s. treasury secretary stephen mnuchin will not have to answer questions about his firm's investment funds when he testifies at the trial of the colony capital founder. a federal judge barred prosecutors from asking steve m

treasuries.: and you had four straight days of losses, it looks like futures bear this out, setting ourselves up for a fifth straight day of losses. a long way to go in terms of u.s. equities and stocks. goldman sachs saying it is not time for the fed to pivot, they are short equities in the short-term. e-mini-futures losses of .5%. europe ended in the red yesterday by about .2%, you are seeing further losses despite unity around the need for support in the energy crisis. it is loans, not grants, that is the importance but you have germans aligning with southern europeans on that front. a couple of individual corporate's. we have the story of renault, as they try and restructure this two decade alliance. we saw upside yesterday on the back of the announcement that nissan would be prepared to invest up to 700 million dollars in there ev unit. renault is looking to reduce its shareholdings in nissan as well. basf bid on the back of an german expert panel recommending subsidies, the chemical maker v

my wife, who is in the treasury department, used to have lunch there as well. my wife is in the treasury department harried extra white said, okay. i'll meet you there. they met for lunch and victor pavlov had a -- that's now how harry dexter white newt who this guy was. he sat down at the table and victor pavlov passed a sheet of paper across the table to harry dexter white and said that i want to memorize i want you to memorize what is there, remember what is there. he read it. he nodded, nodded, nodded. he said yes, i agree with all of this. he folded up the paper and put it in his jacket pocket. victor pavlov says, no give me that back. he took paperback. carried extra white said, yes, i will do exactly what is written down that plan was a secret plan of soviet intelligence by the name of operation snow white as in, harry dexter white. the print land was for harry dexter white and his colleagues at treasury which was honeycombed with soviet spies, the state department, to ratchet up the pressure on the japanese. at that point, japan was at war with in china

what does it mean to lose treasuries?hat is it due to a portfolio when the port in the storm is gone? if you put a chart of how treasuries are performing in the s&p 500, you can see the correlations that we grown accustomed to are no longer at play here. it's a different dynamic. that are in at the market and the people who were born in the 90's are thinking it's an amazing opportunity. it's become more interesting and i think treasuries have more room to go especially at the short end because you have an aggressive fed. they are dead set on raising rates and containing inflation and nothing will stop them. kailey: i get criticism all the time for being a 90's baby. alix: i am the oldest person on set so it's not fair. i'm going to bring in another 90's baby. dani: it is a different world we are investing in and it's a world where the experiment has not been done before. much as been said about the death of 60/40 and we are in october and it's still suffering. is the traditional model dead? kriti: maybe not, when you see

my wife, who is in the treasury department, used to have lunch there as well.my wife is in the treasury department harried extra white said, okay. i'll meet you there. they met for lunch and victor pavlov had a -- that's now how harry dexter white newt who this guy was. he sat down at the table and victor pavlov passed a sheet of paper across the table to harry dexter white and said that i want to memorize i want you to memorize what is there, remember what is there. he read it. he nodded, nodded, nodded. he said yes, i agree with all of this. he folded up the paper and put it in his jacket pocket. victor pavlov says, no give me that back. he took paperback. carried extra white said, yes, i will do exactly what is written down that plan was a secret plan of soviet intelligence by the name of operation snow white as in, harry dexter white. the print land was for harry dexter white and his colleagues at treasury which was honeycombed with soviet spies, the state department, to ratchet up the pressure on the japanese. at that point, japan was at war with in china,

so it's closely linked to treasury yield moves and again, yield hunting in places like high yield, which don't just factor in rates, but also factor in credit risk, as well so are those parts of the market attractive right now >> listen, i think our long-term basis, yes, it's interesting that the higher quality things like investment grade, high-quality munis, treasuries, mortgages, have done worse than high yield as you say, it's a duration move so i think as you're building your income portfolio, you can look at high-yield leverage loans, but the cheaper parts of the curve, the cheaper parts of the market are investment grade, treasuries, mortgages, more traditional safe, higher duration assets. >> as the rate picture evolves, what are your expectations for how the fed plays things out, so to speak, over the next couple of quarters here we've heard a number of fed heads, fed regional presidents come out and predict where they think rates are going to stop, maybe where they end up going, where the terminal rate or the ending of this campaign for rate hikes could be in your mind, what do

orthodox treasury world, you all got it wronu. .., ., .onomic orthodoxy... orthodoxy is _ it wrong. economic orthodoxy... orthodoxy is a — it wrong. economic orthodoxy... orthodoxy is a terrible _ it wrong. economic orthodoxy... orthodoxy is a terrible word, i orthodoxy is a terrible word, orthodoxy in that sense covers a lot, so in a sense the governments of sweden, denmark, france, germany, are following economically orthodox policies, which are much higher tax, much higher spending, policies, which are much higher tax, much higherspending, higher much higher spending, higher regulation much higherspending, higher regulation than we do, but so are the governments of australia, the us, canada, singapore, perhaps not singapore in the same way, but a lot of other countries also find themselves being economically orthodox. it covers a huge range of things. what doesn't sit within it is the idea that whether you are on the left all the right there is a free lunch somewhere and that free lunch is either massive public spending unfunded or mass

session overnight, a surgeon treasury. data really calming these nerves about a more hawkish federal reserve, and more aggressive fed rate hike being tampered down, we are seeing some pretty healthy gains when it comes to the nikkei 225. korean stocks also seen some gains. trading in yesterday session. all of this despite a great deal of political risk without north korean midrange missile being flown over japan for the first time since 2017. and also, watching gains when it comes to australia, he little bit of softness still when it comes to the aussie dollar going into the -- going into the rba decision. >> we see gains after the s&p 500 saw the best day in july, and that really positive wrist sentiment is translating into asian assets. that's it from "daybreak asia". our markets coverage continues. bloomberg markets china open is next. this is bloomberg. ♪ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest

treasury market demand for treasuries remains high there's not another currency anywhere in the worldhat's ready to compete with the dollar or with bonds, and i think there are mechanical plumbing issues that you do have to worry about, and as a treasury secretary, i always worried about them. when things come up that might be kind of sudden events but, you know, that doesn't necessarily reflect underlying weakness >> secretary lew, really goodt have you here today. thank you so much for weighing in on all the hot topics appreciate it. >> always good to be with you. >> jack lew, the former treasury secretary of the u.s take a look at the market right now, strong rally up 3% on the dow. this doesn't even tell the full picture of where we've been today. it has been a stunning range we were down at the lows of the day 550 points after that hotter than expected inflation report this morning, and now we are up about 3% almost a 7% range, a swing here that we've seen in the markets today. the nasdaq up 2.3% it was down more than 3% at the lows we've got every sector higher. it's broad it's

>> liz, it has been a brutal year for treasurys.ooking in the rear view mirror yeah it's been tough but you have to look towards 2023, peak inflation, slowing economy and i think treasurys offer value. there are a lot of different areas within the bond market that offer value. the bond market, the math works for you, meaning finally we're starting to get a coupon in here, after very low negative yielding bonds but so that's the role that fixed income is supposed to serve in here. think about it, really looking towards peak inflation. i think bonds will price that beforehand. liz: tell our investment audience how you feel the best way for them to play bonds looks? >> yeah so i do think treasurys but i think in this environment you can start buying some high quality investment grade corporate bonds. we've been doing that. some of the money center banks. you can pick up additional yield in there. at some point in the near term you're going to want to start to think outside of the u.s. but we need to get the confirmation that the u.s. d

same goes for ten-year treasuries that's the treasury futures. if anything, that cis too extreme., this is important for you at home, the fundamentals but for whatever reason, we can't deny the dollar is in the driver's seat. look at this chart showing the dollar index future in green and the s&p 500 futures in red each price part represents six hours of action. garner points out they're practically mirror images of each other the s&p goes down, dollar goes up this is really important this is it look at this every time ever since slide they had an absurdly strong negative correlation. stocks rallied in august and the dollar started picking up and stocks collapsed you can see it over and over, every time the dollar picks up steam, the s&p gets slammed. every time the dollar pulls back like last week, the s&p shows signs of light you can see the exact kind of correlation between the dollar index and futures and the copper futures. the correlation is so strong it's like synchronized swimmers. copper prices the dollars. lately, garner thinks it is, come on, admit it, you have sometime

treasury council for racial equity.s on the importance of economic opportunity for minority owned businesses and entrepreneurs. this was held during the treasury department bank foreign. -- bank forum. ♪ >> thank you. thank you so much. we have the unenviable position of following the vice president and being the last discussion before lunch. i promise you, it's a really interesting one and something i haven't opportunity to work with our panelists very closely on. i found myself saying over and over, this administration has passed a once in the generation investment in the american rescue plan. this is the second investment through chips and three with bipartisan infrastructure. four, with the inflation reduction axa we have the edible opportunity we know can translate into real wealth building opportunities for communities of color, businesses owned by people of color. these public investments are not enough, particularly when it comes to equity investment. that's what we will talk about today. in particular, i want t

rishaad: complicating things is people leaving the treasury market. we are talking about a veritable cornucopia. enda: potentially a big complication. treasuries have buyers across the world. governments, central banks. those are not buying at the pace they used to now. at the same time the fed isn't buying treasuries because they want to push toward qt eventually. someone is going to have to mop up this issuance of debt when there is already a lot of debt in global markets. borrowing costs are going up and up and up. you would have to say their research only -- you would have to say there is certainly room. rishaad: thanks, enda. let's tell you about fed speak, more fed speak on the way. the cleveland fed president giving her view on the federal reserve. yvonne: joining us now to talk more about that is the executive director of macro sales at j.p. morgan australia. the hawkish fed, a pivot or not, things will be squashed -- for now, but it is that still the base case? >> i think we should be listening a bit more to the fed speak last week. i think w

guide -- report on the treasury guide.addition, we hope that this panel will serve as a call for action to encourage more support for governments to implement best practices, evidence-based intervention, and models for community engagement. that is why the white house and treasury are calling on leaders like those in this room to work together to create more communities of practice, resource guides and other tools that will governments in using best practices in their implementation of recovery funds. i would like to introduce your moderator, a friend and true leader of achieving equity outcomes. jim, chief impact officer at the philanthropy partners. thank you. >> thank you. good morning everybody. excellent. i spent most of my time in education. it's important to get it going. i want to make sure you know the panel, the mayor of senate tony. -- san antonio. we just talked about it. i promised i would get it right. of course, clarence anthony, from the national league of cities. today is an important day because as you he

my wife, who was in the treasury department, used to have lunch there as well. and harry dexter writes it, okay, i'll meet you. and they met for lunch and victor pavlov had a copy of the new yorker his hand. that's how harry dexter knew who this guy was. they sat down at the table and victor pablo passed a sheet of paper across table to harry dexter and said, i want you to memorize what's on this sheet and i want you to remember what's there. and he looked at it and he read it and he nodded and nodded know i said yes, yes. i agree with all of this. and he folded up the paper he's going to put it in his jacket pocket. and victor powell says, no, no, no, you pass, me, that bag. and he took the paper back and. harry dexter white said, yes, i do exactly what written down here, that plan. that was a secret of soviet intelligence by the name of operation snow white, as in harry dexter, a white. and the plan was for harry dexter. white and his colleagues in treasury which was honeycombed with soviet the state department to ratchet up the pressure on the japanese at tha

my wife, who was in the treasury department, used to have lunch there as well. and harry dexter writes it, okay, i'll meet you. and they met for lunch and victor pavlov had a copy of the new yorker his hand. that's how harry dexter knew who this guy was. they sat down at the table and victor pablo passed a sheet of paper across table to harry dexter and said, i want you to memorize what's on this sheet and i want you to remember what's there. and he looked at it and he read it and he nodded and nodded know i said yes, yes. i agree with all of this. and he folded up the paper he's going to put it in his jacket pocket. and victor powell says, no, no, no, you pass, me, that bag. and he took the paper back and. harry dexter white said, yes, i do exactly what written down here, that plan. that was a secret of soviet intelligence by the name of operation snow white, as in harry dexter, a white. and the plan was for harry dexter. white and his colleagues in treasury which was honeycombed with soviet the state department to ratchet up the pressure on the japanese at tha

i agree with you four or five weeks a about the incremental buyer in the treasury market what we haveen south korea, japan and others supporting their currency, but the domino effect of that, and, remember, that's driven somewhat by their policy decision to keep rates preterr nat rally low, and the private wealth, i'm going to go out and buy dollars that's the incremental buyers. that's why they need to join the rest of the world and raise rates and grit their teeth and bear through it. >> jim, i'll let you respond, too, if you want i think part of my point and greg's as well is you don't need an end of the world scenario or the worries about it for the stock market to go down another 20%. we're just in a period of normalization. the stock market went way up on a period of abnormalization, where money was free for presumably ever. most people haven't even seen a downturn of magnitude, who are now coming to grips with the fact we're normalizing policy, and thus valuations are normalizing, earnings may normalize, and stock prices may normalize. >> so, i think there's a lot of validity t