as we approach the debt ceiling, the treasury delayed issuing new u.s. treasuries. now that the debt ceiling has been increased, there are a significant discussion that the treasury may issue hundreds of billions, maybe a trillion dollars in new treasuries. in particular in short order. do you hold the concern that others do that this may alter the interest rates the united states would receive on the issuance of the treasury's, and if so, what mitigating measures are you in the treasury taking to avoid additional costs on interest rates ... >> so it is our obligation to rebuild the treasury balance up to a safe and appropriate level, but we have consulted widely with market participants about what the best way is to do that to minimize the cost of the federal government and to avoid the market disruption to the maximum extent possible. as we build our balance, we will certainly be careful to see if there are impacts or market disruptions. >> then one of those techniques and measures you're planning to implement to reduce volatility or increase interest rates? >> we

treasury department. who has lent his voice to issues on really everything from ndis to national security, to a.i. and thanks so very much, deputy secretary, foran joining us. we know that this is an extremely busy period here for you, and we're really honored to have you. we're here to talk about, obviously, ndi in the wake of silicon valley bank and ndis, and is that's been of interest to say the least for the biden administration. maybe just for conxt, can you give us a brief sense of sort of the range of programs up to thi point that have kind of focus on ndis at the treasury department just to sort of set the stage? oh, i think we're losing your -- ah, okay, we have you now. >> okay. so it's good to be with you. let me start off by saying thank you to chris nicole f your leadership for pulling this together and for being such a great partner with the9 treasury department over the last several years of the bid-harris add administration. and i'lle start by saying mdis and cdfis have never been better p

treasury department who lent his voice to issues on really everything, from ndi's to national security to ai. and thanks so very much deputy secretary for joining usment we know this is an extremely busy period here for you and we're really honored to have you. so, we're here to talk about ndi's in the wake of silicon valley bank and mdi's and that's been of interest to say the least for the biden administration. and maybe just for context, can you give us a brief sense of sort of range of programs up to this point that have kind of focused on mdi's at the treasury department just to sort of set the stage. >> oh, i think we're losing your-- >> let me see. >> yeah, we have you now. >> it's good to be with you. let me start out by saying thank you to chris and nicole for your leadership and for putting this together and the nba for being a great partner with the last several years with the biden-harris administration. i'll start by mdi's and cdfi's have never been in a better position than they are today. largely because of the leadership of the institutions who have done a tremendous jo

maybe just to level set, what's been the treasury department posture for those events and the policyand do you have any particular sense as to where we are, not just in terms of the market but where you are and where the treasury department is when it comes to thinking through the appropriate responses? >> i was recently looking back at my calendar on the weekend of march 12 i looked at my sunday that week and looked as busy as any weekday because we were spending time not only thinking about what we would do about signature bank in silicon valley bank that thinking about what we are going to do to protect the system. to protect banks like mdi's and cdfi's as well as create a facility that would make sure institutions have access to liquidity's they can use to meet the demands of their depositors. ultimately it was done for the entire system. i recognize the vast majority of the deposits are mostly insured. ultimately in order for mdi's and cdfi's to grow and meet the needs of their communities they want to grow their deposit basis. in order for that to happen, people need to feel se

the extra money has been invested in treasury. by law it can only be invested in treasury. the treasuries have aeses retury ten, 15 years ago, a return of 1% or 3%% or 4% grade hunter biden inflation rate has gone up 67%. we are losing money on those investments. it's just like the worst investment strategy you could possibly have. the money we have in real dollars is shrinking as inflation continues to be high so what we are doing is saying you can do that on social, but in our fund, he would put it in the economy, the stock market and allow that to grow and overtime since 1929, average 8.5% return year so you can either go to 3% return in the treasury or but on doing what's happening overtime, we just estimated .34 j but that's how u bail out the system. >> west chester, ohio, republican. >> good morning, thank you for taking my call. a very specific -- very detailed. our programs in the 80s were earned income tax credit which i agreed with in the 80s but my family owned the daycare and without so manywe wonderful safy decks. we got chip, we've got -- you know what they a

treasury department. who has lent his voice to issues on really everything.rom andy eyes to national security to ai and thank you so much deputy secretary for joining us. we know this is an extremely busy period here for you and we are really honored to have you. we are here to talk about mdi is in the wake of silicon valley bank and that's been of interest to say the least for the biden administration. maybe just for context, can you give us a brief sense of the range of programs up to this point that have focused on mvi's at the treasury department to set the stage. i think we are losing æ >> it's good to be with you let me start by saying thank you to chris and nicole for your leadership and pulling this together and to the mba for being such a great partner with the treasury department over the last several years of the biden/harris administration. i will start by saying that mdi's and cdfi's have never been in a better position to face the headwinds that they face. these institutions have done a tremendous job in preparing them to lead to the communitie

treasury department who has lent his voice to issues on everything from mdi's to national security to ai. thank you, secretary, for joining us. we know this is an extremely busy period here for you, and we are really honored to have you. we are here to talk about mdi's in the wake of silicon valley bank and mdi's and investments of interest, to say the least, for the biden administration. maybe just for context, can you give us a hint of the range of programs up to this point that have focused on mdi's at the treasury department, just to sort of set the stage? i think we are losing your -- we have it now. wally: it is good to be with you. let me start by saying thanks to chris and nicole for your leadership and to the nda for being such a great partner with the treasury department over the last couple of years with the biden/harris administration. i will start by saying mdi's and cfi's have never been better positioned than they are today largely because these -- largely because the leadership of these institutions have done a tremendous job in preparing them to both lend to the commu

two-year treasury was above 5. it's 4.75, but it's lower than it was before and the ten-year treasury hasn't seen 4 in a long time it's range bound, but it's not going anywhere i think that if the fed follows the path they're talking about, i think steve liesman is right, maybe their intention is to break something. if they do that, they are going to break something we already see lending conditions getting much tighter in these surveys of lending officers they've been tightening credit conditions for a long time that leads to a credit starvation for the engine of this keconomy, particularly for small businesses just to repeat the fed was way too slow in raising interest rates back when they started i said they should raise rates 200 basis points right now they didn't. because of that long rates went up because they were anticipating the inflation and that led to this banking crisis at the regional bank level they were kind of responsible for that now, if they overtighten which i think they've already done, what ab

that extra money is invested in treasuries. it can only be invested in treasuries by law. treasuries have a return since they bought them 15 years ago have a return of 1% or 3% or 4%. under biden, our inflation rate has gone up to six or 7%. we are losing money on those investments. it's the worst investment strategy could possibly have. the money we have in real dollars is shrinking as inflation continues to be high. what we are doing is we are saying you can do that on social but in our fund, you would put it in the economy, the stock market and allow that to grow in overtime, that is average since 1929, i think 8.5% return per year. you either go to 3% return in treasuries and the current model or you can bet on what's happened over time of roughly 8.5%. we just and some -- estimate a little more but that's how you build up the system. host: west chester, ohio, republican. caller: good morning and thank you for taking my call. i have a very detailed question. programs are safety nets in the 80's for the income tax, earned income tax credit which i agreed with in the 80'

spreads, why not just own treasuries or something similar?n chad spread risk if the returns are coming from risk-free yields. from my perspective, there is no relative value given where spreads are in corporate credit. there is relative value in duration, and i think you confront and treasuries or triple l -- aaa clo's and you can barbell with longer-term treasuries like the 20 year and 30 year and get total return potential at the long end. i think you could do that today and feel good about levels. we are there and you should be involved in those parts of the market today. i want to see high-yield north of 800 basis points, ig north of 180 basis points before i am excited about ig in high-yield. katie: just cut out the middleman. weigh in when you think about treasuries, what is the valuation, relative valuation relative to the corporate credit market? ken: i take michael's point, the high-yield spreads are at the narrow end of the range and have been running at 125 basis point range and 4.25 or 4.30 at the narrow end. at 5.25 or 600, if we

the outlet for treasuries is positive >> positive for treasuries you sound bearish on stocks. what is the best way to express your view with the markets and where they are headed? how are you planning for the pull back? >> under weight in u.s. equities this is the part of the global market which is frothy japanese is frothy as well it is building in the last ten years is where the excess has been funneled. i think there say large rating to come there. that is one way. overweight bonds, overweight credit, overweight cash. we are defensively positioned. >> harry colvin at longview economics. thank you. >>> one key driver of the action we're seeing in basic resources in europe has been china central bank which cut the short-term lending rate for the first time in ten months as it looks to reduce the demand. it is looking to reduce the rate to 1.9% injecting 2 billion yuan it could cut longer term rates in the coming weeks. that is part what have is driving the sentiment around the china story more broadly this morning pairing the yuan back to the six-month low against the u.s. do

almost 5% into your treasury five plus on treasury bills right now about 4% on longer-term governmenturies offering recently good deals but exceedingly as inflation around 3% progress an argument among bonding geeks, you put your money in the short term stuff and then help in a year or two you can roll it over at equal yield or do you say look, were not pointed the opportunity go to tinian park at 3.7 or so? ask hi 5% t-bills are hard to pass up i don't think you're going back to zero short-term rates anytime soon you make it three -- 5% short-term yields for quite some time right now. quick to look at the yields of the treasuries are getting 5%, is it worth it to look at junk bonds are they worth the extra risk? >> junk-bond is 9% of pre-could yield given the fact it looks like the economy is going to avoid a recession. on default rates are probably going to say pretty low. one thing is underappreciated by the junk-bond market most of the sector is pretty high quality at least for junk is concerned. then some good consolation th there. jack: somewhere in the middle may be treasury of

and by treasury bills to december the yield curve.ng as that stays 100 basis points negative to used to tense, the banking system has no choice but to shrink. maria: jay powell is going to speak with european central bank had in portugal tomorrow followed by the bank of spain and madrid on thursday. christine legarde says the central bank will not be able to declare the end of this historic cycle of rate hikes anytime soon. we are seeing a similar situation across the world. what does that mean with your recommendation for investors right now. what are you telling clients? >> i think the next month or so is an absolute critical juncture. perhaps an opportunity will be created out of this but it's likely at lower levels. i suspect because of all the treasury in the tightening of liquidity. it is likely that bank stocks come under pressure, the high-value tech stocks come under pressure and we sell off further. if that happens i guarantee the fed is done and out which case we may get an opportunity to put money to work in the market. fo

so that's, that's the treasury part of the answer. we will, of course, continue to monitor conditions in money markets, and we're prepared to make adjustments to make sure that monetary policy transmission works. was there another part of your question? [laughter] >> yeah. are you considering lowering the rrp rate to help take some pressure off banks? >> so we have a number of -- i would say the rrp doesn't look like it's pulling money out of the banking system is. it's actually been shrinking here lately, so i don't think -- that's not something we've thought about a lot over time. it doesn't really look like that's something we would do. i think it's a tool that we have. if we want to use it, we can. there are other tools we can use to address money market issueses, but i wouldn't say that that'ter: jenelle -- with bloomberg. have you seen sufficient cooling in the housing market to bring inflation down? for example, how does the recent rebound affect your forecast, and how does it factor into monetary policy? >> so certainly housin

has been paying down all t-bills, because they couldn't issue more debt that treasury general accountto bear bucks they have to replenish that next three to six months going to adequate to ton of issuance until the marketplaces so treasury yields back up, net net reverse repo facility money market funds money into facility evening norths 56% safe money, at the same time, you've got bank reserves as treasury issues more debt we are going to have bank reserves more than likely coming down a story in our view something for risk assets too because we know risk assets correlate fairly well to the expansion, of the fed balance sheet, this is going to be a story in next three months of liquidity retraction that is something to keep an eye on going to be financial liquid coming out of the system versus moving into system, the balance sheet in general march hit balance sheet went up expanding that balance sheet with lending programs, sits on asset side of the fed balance sheet back with finally back to where we were in march with regard to overall balance sheet. >> interesting doug they are qu

you will have a gush of bonds and bills issued by the treasury. we don't know what that does to the bond market. yields creeping higher, the whisper number as you say is 250 out of 185 on the bloomberg. the dollar dips lower as we go in a pro-risk mood. and brent is down 3%, down 9% in may, does that set the table for an additional move by opec+? the saudi's are cutting 500,000 barrels. the russians are lagging. we don't want a fractured meeting this week in vienna. unpacking my bags. i will stand outside the front door and tapped gently on the window and say please, can i come in. i will be standing outside harry ing anybody. gold the best week since april. we will go to vienna and being outside the building will not thwart my enthusiasm. dani: we have bruce einhorn on the debt ceiling finally clearing congress. and valerie tytel on those fed beds, and the jobs outlook for today. manus: the senate passed the legislation to suspend the u.s. debt ceiling, ending the drama that threatened the u.s. financial markets and the global system. the measure

this is the operating time of mellat bank treasury on sundays and wednesdays at 08:00 and saman bank from saturdays to wednesdays from 09:30 to 12:30. delivery and delivery of sadaret bank treasury coins on sundays wednesday at 9:30 and future bank from saturday to wednesday at 6:30 to 13 levels, as well as delivery of coins to the treasury according to the previous procedure and in coordination with the treasury officer, the deputy supervisor of the stock exchanges and the publishers of the stock exchange organization, the company said last year 120 thousand billion tomans they were financed through debt instruments of the stock exchange. according to mr. status, the capital market has a lot of capacity to finance economic enterprises, and last year 300 thousand billion tomans worth of initial public offering shares were issued. he added that the capital market should be looked at as a long-term market and investing in this market smart and it is long-term, the deputy supervisor of stock exchanges and publishers of the stock exchange organization stated, and the investment funds now

treasury, then the u.s. treasury in dollars, there still is not really a large market for governments to issue the bond and remedy the way that there is for u.s. dollars. >> is there a critical point as far as an interest rate that would overcome that in other words that would force them to go? >> more than a -- i think the real way in which people start being able to issue and borrow is when people start thinking in terms of the goods they need to buy and consume. fundamentally most countries around the world if they issue a bond and remedy the calculation they have to do is okay i'm going to pick the remedy and convert it to buy the thing in which i need and so while actions in the u.s. financial system are certainly going to affect other countries decisions to borrow, the kind of underlining challenges in the chinese financial markets and fundamentally the lack of goods bystanders sold are going to continue to hold that kind of growth of the market for a while and in particular the fact that many countrie

has given— for example, until the treasury has given its_ for example, until the treasury has givenry, uniquely— given its sign. so the treasury, uniquely amongst government departments, is already part of many decisions _ departments, is already part of many decisions across government. the nature _ decisions across government. the nature of— decisions across government. the nature of that involvement and the nature _ nature of that involvement and the nature of— nature of that involvement and the nature of the cooperation is incredibly important. i listened with great interest to what oliver letwin _ with great interest to what oliver letwin was saying and i made one observation, unfortunate not all ministers— observation, unfortunate not all ministers are like oliver letwin with the — ministers are like oliver letwin with the kind of self starting capacity _ with the kind of self starting capacity to check everything, chase everything, and you can't build an entire _ everything, and you can't build an entire system unfortunately around a future _ entire system unfortunately aroun

the priorities that we follow in the ministry of economic and financial affairs in the field of treasury, so that this marriage is part of the government's expenses . hopefully, one of the most effective matters in the field of financial discipline of the armed government of the khazan unit will be done. is to this what you are saying is that all the receipts of the ministries, state institutions and state companies, as well as all of the accounts payable of this type, plus the accounts of non-state public institutions, to the extent that they use the public budget, should be centralized in the treasury of the entire country based on note 19. the budget law has 1,400 sub-accounts at the end of april, but the results show that by the end of 1401 , we only had 92 devices out of the 4,000 accounts that existed. azad university, university of medical sciences, so far in full it has not been transferred to the central bank's treasury account, and this is despite the fact that the minister of health in march of last year promised to inquire about the blocking of the accounts. the side is due t

first of of the treasury — debt ceiling. first of of the treasury secretary - debt ceiling. i debt ceiling. first of of the treasury secretary is the l debt ceiling. first of of the i treasury secretary is the same secretary that said there would be no sustained inflation in this country. she was wrong on that banshee is wrong on this. the legislative reality is that we would have passed a short—term extension for the debt ceiling so that we would give our selves more to negotiate. it was never an issue in this case, it's one of those things that people use to try to scare the public to move people in the wrong direction, and they succeeded in this case, because this tale goes in the wrong direction.— the wrong direction. what is the mistake _ the wrong direction. what is the mistake that _ the wrong direction. what is the mistake that you - the wrong direction. what is the mistake that you think l the wrong direction. what is l the mistake that you think the speaker of the house made? he made speaker of the house made? he: made the fundamental mistake of misleading the amer

we had strong economic data to date that led to treasury yields higher that pressured the tech trade with first quarter gdp revised really considerably higher uh, we are talking about household spending and consumer spending accelerating at the fastest pace in a couple of years or so. we had jobless claims unexpectedly falling, or were talking about the long dated treasury yields actually rising uh much faster than the uh shorter end of treasury yield so that actually led to that deeper curve inversion in it. we also have a little bit of pressure for oil prices with a lot of volatility as u.s. data could lead to fed tightening and pressure, that is the question investors are trying to digest. let's bring in mark crown failed in our global economics and policy editor kathleen hays and let's start with mark, because it has all been about the treasury's trade today with yields rising most to the highest level since march. mark: well, jerome powell has been telling traders that he is data dependent on the path of what he does with interest rate is dependent on the next sets of data. yest

the 2-year treasury is 4.93% the 30-year treasury is 3.93%. in energy, a tough quarter for crude oil prices you see wti benchmark price up 1% $71.50 that $70 level is something we have been watching for some time ice brent crude is $75.19. up 1% as well. remember, wti is on pace for the second negative quarter in a row. brent is facing losses both down 13% so far this year as you see here. oil prices have been under pressure >>> let's check on the top corporate stories with silvana henao. >> dom, good morning ch china's economic recovery showing signs of stalling. the factory activity for june contracted for the third month meanwhile, manufacturing activity at the weakest level since beijing abandoned the strict zero covid policies last year the data coming days after the premier said his country was on track to reach the growth target of 5%. >>> workers at the boeing supplier heading back to work after a new labor deal roughly 6,000 union members at spirit aero systems voted to approve a four-year contract the deal coming as boeing prepares t

treasury bonds being viewed as a safe instrument by the entire world.is the instrument held by the public. one third is held by foreigners. every time, there was the perception that this is a safe instrument perhaps erodes. we might have a situation that the credit rating will drop. that will have huge implications that interest rates will rise. >> could have you with us. the senior fellow with implications of this debt deal trying to get past the senate. traders actually looking at past products already. avenue valley let's bring in annabelle talking about looking past the issues right now. the tech rally has restarted. they are helping at least one well-known on hedge fund. >> that is right. this is considered one of the most successful tech centric hedge funds on wall street. you can see the likes of meta and nvidia. we have been tracking these offerings around ai. this also shows the gains or losses. that has been helping. we now understand over the course of may, it posted gains of 6%. that takes its year-to-date gains to over 6%. we have been hear

sitting down with the treasury secretary in china for the first time as treasury secretary.hen you look at the secretary of state anthony blinken, when he asked for more dialogue, that was rejected. that would have been, i would assume, the low-hanging fruit the u.s. wanted out of that but did not get. what this does is at least open up this avenue for dialogue. shery: annmarie hordern joining us from washington. and of course we have been watching the russia front, president vladimir putin has condemned the leaders of the wagner group traitors to russia. >> dear friends, today i have once again ordered -- and citizens, i thank you for your endurance, solidarity and patriotism. civil solidarity showed that any ransom, any attempts to organize internal unrest are doomed to fail. shery: for more, let's bring in the bloomberg political news director jodi schneider. we heard from president biden himself, what exactly did he say? jodi: we heard from president vladimir putin late in russia today, this evening in russia, and basically in the translation, he used words like me to me

dani: going on to the overall treasury market, jp morgan and goldman sachs seeing the depth for treasuriess starting to rebounds and concerns are easing. have you seen something similar? guy: these are the most liquid markets. there's a lot of seasonality as well in terms of liquidity. i think what's happening now is we are getting closer to the peak levels, peak interest rates. as a result, when we are at that period, you see liquidity coming back. to go back to the credit example, the more liquidity you have in government, the more it looks like an attractive outlay relative to other asset classes. other asset classes are suffering and liquidity is not as good. the flight to quality and government will the a more impressive argument. dani: historically we see a rally before the end of the rate hike cycle, correct? guy: yes. dani: do we know it is time to start buying it? guy: a review is in the u.s. we are at the end of the rate hike cycle and in europe probably another two hikes. but even another two hikes would probably get us to something like september for the peak of the rate cycle.

and they bought long term treasuries, additional long term treasuries, that would've been facts satisfied the capital requirement. >> in other words treasuries could've been used. >> well there are an asset. >> treasuries are an asset. >> you have to find that somehow. >> the, then the follow-up question is given how poor of a job they did at hedging against long term interest risk, if they had bought more long term treasuries, do we think their balance sheet would've been in a better or worse shape? >> they would've had a better loss in more to the point, they would've had overwhelmingly deposits. >> exactly, of course. >> i want to kind, of the point i'm making, which i'm sure you can kind of understand here is that capital requirements i'm not a panacea to the type of banking from that we saw the silicon valley bank case. there's a good argument that higher capital requirements on silicon valley bank would've made the bank run wars, or even, you know, kind of made it more catastrophic, or a quicker failure. at the very least, i don't think it would've helped. do you agree with that? >>

turkey has named his treasury and finance minister.will face the challenge of restoring investor confidence after the election. an advocate of conventional policies signaling a shift from herod want unorthodox positions. airbus is the wide-body aircraft market is set to experience lengthy wait times similar to the single aisle segment. that is after rapidly stocking up. the wide-body aircraft generally more complex due to elaborate interiors. that is your bloomberg business flash. >> coming up, everyone from sovereign wealth funds, venture capitalists are talking about the new favorite as a class. ♪ good night! hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ >> things are really busy. we had a great memorial

united states treasury. it is indispensable.extraordinary status globally helps us keep borrowing costs low and the country, but looking at the debt ceiling now, looking at the national debt, we are rapidly paying a lot more in interest expense that i think was recently imaginable. it clips other vital social programs including medicare not too long from that. host: if united states were to be downgraded, then what would happen to the other economy going around the world. could it have any impact? guest: if you think the united states is less than aaa, should we scrutinize other countries? should we throw more money into european economy like switzerland. if they take treasuries and put it into other countries, this is the foremost interest rate on the planet, the united states interest rate, and borrowing costs here, credit worthiness and affects our -- everybody up and down. it will not help those seeking imf bailouts but then again, this happened to us and it was not cataclysmic, like going off of the gold standard was not ca

large, until the end of the sale of government property, the report sent on june 17, 1401, by the treasury of the whole country, samane sedah , as an information bank on immovable property of the executive bodies in 2013, all ownership documents in the repositories the ministry of economic affairs and finance was registered in the system in the provinces and headquarters, and some of them were transferred to the country's real estate and document registration organization, the ministry of energy, the national gas company of iran, the post company of the islamic republic of iran, the tehran municipality, and the iranian statistics center. the sada system is in progress and also the general treasury in its response on the 5th of december 1401 requested several commissions from the executive bodies to, in addition to the plan to complete the existing information , to register the property information at their disposal in the system, but so far only 585,000 subjects 29 law of the 6th development plan is also the information of their property, the respected representatives are announced, the pr

so that's the treasury part of the answer. we will of course continue to monitor conditions in money market it's and we're prepared to -- markets and we're prepared to make adjustments to make sure money transparency transmission works. was there another part of your question? reporter: are you considering lowering the r.r.p. rate to help take some pressure off banks? mr. powell: we have a number of -- i would say the r.r.p. doesn't look like it's pulling money out of the banking system. it's been shrinking here lately. that's not something we've thought about a lot over time, it doesn't really look like that's something we would do. i think it's a tool that we have if we want to use it, we can. there are other tools we can use to address money market issues. but i wouldn't say that that's something that's likely, that we would do in the near term. reporter: janel with bloomberg. you have seen sufficient cooling in the housing market to bring inflation down? for example, how does the recent rebound effect your forecast? and ho

the deal with the debt ceiling the 10-year treasury at 3.801% 2-year treasury up to 4.056. >>> th

and treasuries now are five and a quarter. i think they're going to be going down not up so i still think there's the advantage to stocks for the long-term investor >> what do you want to say to that do you feel like it's going to get tougher at some point to make the case for treasuries over stocks? >> yes, of course. because as we're starting to see, if you start ending the fed's hiking cycle, eventually you'll have to roll over those treasuries so the reality is for long-term investors, you need to remain invested in stocks but what's interesting to the professor's point is that he's thinking 7 to 8% returns that's about half of what we've had over the last ten years. that speaks to where valuation isn't a great tool in the short-term but it's a very helpful tool when you're predicting out five, ten years plus so it may not tell you that the a rally's going to end today it tells you you need to lower your expectations over the long-term. >> have you lowered your expectations by virtue of those numbers you suspect eck by tie

in october, the fed suspended its remittances to the treasury based on losses. the lost revenue for the treasury will result in $760 billion over the next 10 years, and so it does concern me that treasury is blaming banks for mismanagement when you yourself had to stop remittances and will suffer losses. now, when the fed prepared the semiannual monetary policy reports, none of those reports mentioned interest rate risk would impact government finances. should that have been disclosed, or did the fed not understand its own risk and the correlation to the interest rate environment russian mark >> so what we do, we remit all of our profits. in that era, those profits were enormous, something like one point $2 trillion of profits the treasury department because we are funding purchases of long-term assets with issuance of lower rate instruments. anyway, that is what was happening. as we now enter the era of raising rates, that will turn around little bit. ultimately, we don't manage at all. what we are managing is next unemployment priced ability. using our tools t

every asset in the world is priced, offer us treasury. if there was some question put into whether the value of the treasures were real or not, that would have wreck havoc throughout the system. the level of of cooperation that we've seen with regard to this, a debt city negotiation is quite different in tone, at least to the ones that we've seen in the past. certainly the ones during the trump administration, where should we say, somewhat cheated at times. this seems to be a lot calmer. there was a point back in 2011. if i remember that the us last, it's triple a rating. do you think that at least in part, has been at the box of everybody's minds with regard to these negotiations as well that that is absolutely the question that you should be asking and what i think market participants themselves are asking in 2011 standard and poors said to us, essentially both parties, what the deals you've collected or not together, it's something that will not allow the deficit and debt to go on the sustainable trajectory. in other words, you've got

treasury atrted the month at 3.6. elevated yield on the 2-year treasury as well a story we have been talking about. a lot of people thought th yields would come down we want to talk about oil. oil on pace for a down week. right now it is up .50% for wti. $71.65 brent crude is up $76.25 natural gas down 1%. >>> time for the check on the action in area and europe with julianna tatelbaum she is standing by in the london newsroom great to see you, julianna >> frank, it is wonderful to see you. here in europe, we are off to a sluggish start here is the picture. it is mixed with the direction of travel. contained at the index level we are seeing heavy selling in the chemicals sector this morning. one name has stood out in the uk croda. ftse 100 is down this morning with that chemical company down more than 13%. the issue of a profit warning saying they are seeing consumer care business down double digit from last year in crop protection, another area for the company, it started out well, but the busine

elevated on the 2-year treasury. now we want to talk tech nothing tech with a stellar start to the year up 27% in 2023 boosted higher by the a.i. trade. investors looking to the second half of the year and growing focus on the potential risk with the massive concentration of the market on the big cap tech stocks with bob pisani >> many say 5% to 10% pull back is overdue many have been warning about increased concentration risks among the mega cap tech stocks with very little effect. three worries here first, lighter volumes are coming in the months ahead second, renewed concern that interest rates may be inching higher which hurts tech stocks finally, worries about sky high prices and valuations. the value of the largest tech companies reaching levels no one has seen before. it is one thing to say apple's market cap is nearly $3 trillion, which is true, but would you believe me that is as big as the total gdp of france which is almost $3 trillion. some refuse to believe it a month ago, but it is true. many like wells