u.s. treasuries. based on u.s. treasuries.till a good chance you earn your coupon and have risk if it is a risk off deflationary environment, or risk if it is a higher rate inflationary environment. based on u.s. treasuries. still a good chance you earn your coupon and have risk if it is a risk off deflationary environment, or risk if it is a higher rate inflationary environment. right now, it is a higher rate repricing leading to some stress in the credit market. i would put it as a bigger risk than a deflationary risk off, so i think there is a good chance you can earn your coupon but not as much value left in the credit this is it a market that is materially mispriced. jonathan: mispriced by how much? the reason i ask this question also, is what is the time arising for this trade? is this something that is going to have more sustainable upside? yields higher and yields higher again. lisa: i cannot make a promise. i think it is a structural yields higher and yields higher trade. if you look at the dependency ratios in italy

u.s. treasuries.ll a good chance you earn your coupon and have risk if it is a risk off deflationary environment or a higher rate deflationary environment. the higher rate repricing leading to distress in the market is a bigger risk than a deflationary risk off, so i think there is a good chance you can earn your coupon but not as much value from a year or so ago. >> you may be thinking about the credit and focused on what is happening on peripheral spreads and what is more remarkable is the likes of it -- spread is still tight, does that make sense? to me, never made sense but you get the protection of the european union or the ecb. when you look at the of economies of these countries, which are rather own a tenure at 145 or a u.s. treasury at 280 today? it goes up and down the line, it offers great protection, currency protection, market protection, at some point that will crack. >> lisa, your thoughts? you want to be italy or germany? >> there is an election coming, and before the french election f

u.s. treasuries allegations last week teri schultz that thanks for your coverage now who'd have thought you could pop into an electronics store to buy a car that's the case for this next electric vehicle that's been developed by a bunch of swedish students of two thousand people of preorder it. it began as an innovation project at lynn university in sweden now after raising well over a million euros in a crowdfunding campaign it's become a futuristic looking e-car designed to be the next generation of electric vehicles the new city car has some features that have alluded other car makers it has a three hundred kilometer range and the battery can be fast charged in just over three hours using induction technology there is also a removable battery pack that owners can plug in it home or at the office unity is also struck a deal with an electricity provider and car owners will receive five years of free solar energy to charge their car so you doing your daily commute back and forth every day you not even worrying about plugging it in its energy is taken care of it doesn't cost you a dime. owne

u.s. treasuries and if u.s. easuries are usually -- are yielding to a half percent in the dollar is going to fall by 3% that's not an attractive investment. if the trend in the dollar continues you could see foreign demand weakened. but foreigners have not been major participants in the u.s. market on a net aces over the last several years -- on a net basis over the last several years. david: there's a sense maybe we don't have as many foreign buyers today as we did he year or two ago. is that wrong, and to what extent is the volatility in the fx affecting hedging costs? ra: interestingly over the last two years net buying by foreign investors has been zero. if you look at the aggregate data you see there hasn't been a significant shift out of places like europe and asia into u.s. treasuries. what you have seen more is the u.s. deficit has really been absorbed by u.s. domestic and in particular investment managers. so only about 50% of auctions have been taken down by foreigners, when it has been upwards of half

u.s. treasuries.ll a good chance you earn your coupon and have risk if it is a risk off deflationary environment or a higher rate inflationary environment. right now, it is a higher rate repricing leading to some stress in the market is a bigger risk than a deflationary risk off, so i think there is a good chance you can earn your coupon but not as much value left in the credit markets as we had a year or so ago. jonathan: if you are at the federal reserve, you might be thinking about what happens with credit. if you are at the ecb, you would be more focused on peripheral spreads. what is more remarkable is the likes of it -- spread is still tight, does that make sense? kevin: it's never made sense to me, but you get the protection of the european union or the ecb. when you look at the economies of these countries, would you rather own a 10 year at 145 or a u.s. treasury at 280 today? it goes up and down the line, it offers great protection, currency protection, market protection. at some point, that

u.s. treasury about those allegations against. and whether the european central bank was acting too cautiously their current bills and with the analysis from frank that thailand's economy grew three point nine percent last year fueled by an increase in exports of machinery computers and cars it's the strongest growth in five years and while the tourism industry remains critically important exports now make up two thirds of the economy because we can sometimes dubbed the detroit of the east into the presence of several foreign automakers like ford toyota and honda and also houses petrochemical and electronics companies growth this year is forecast to top four percent although a lot of economic indicators point to the recovery waning from now on let's pull in our asia correspondent andrea hange to get an idea of the outlook andrea. is this is good as it gets fertile and it could be been if thailand doesn't receive any private investment that it severely lacking at the moment i'll focus numbers up pointing to growth at below four per

u.s. treasury $179 billion with securities.banking and says it's bracing for the next financial crisis. manus: lawmakers demand the u.k. prime minister take a harder line on brexit and make a quick, clean break. ♪ anna: good morning, everybody. it's around 7:00 here in london. we got information from a mining giant. we have full-year adjusted ebit a touch below the estimate. full-year maga -- ebitda, in the same region. the big question going into this is in return of cash to shareholders. depending on the size of the theyt that we see here, say in the statement, what level of payment are we seeing and how will they balance that with him and day -- with them in a -- m&a? we are focusing on the dividend payments. a historyrecommend should of $2.9 billion or 20 u.s. cents per share. they will be paid in two equal payments. there is the announcement on what they will begin back. the question is how do you balance the return of cash with m & a intentions. they have added to their portfolio. copper assets, oil assets, call, agricult

u.s. treasuries again? unhedged purchases of u.s. bonds could begin. think that happens in february. i think we have to wait until the end of march, when they start setting their plans and maybe until april 1 it starts happening. there is a risk it could test 10 in the medium-term, it's a great buying opportunity to -- opportunity. haidi: i want to throw out this quick chart. in the aussie despite record lower rates down under. a lot of the arguments go toward that. 73had this call saying points by the end of the year and they are talking about rate differentials. we know it tends not to play out very well for currencies like the aussie. do have a call on that? guest: is quite simple. i think it will state wage found and i don't buy the argument that just because it collapsed that the aussie is overvalued. if you look at the equilibrium model that includes interest rate differentials and of the terms, which is considerably higher than it was 10 years ago, the aussie dollar is actually very close to fair value. in fact, it's the closest it has been for

u.s. treasury at 280. it goes up and down the line.hink he gives great currency protection, market protection. what to be sure of italy and spain here? >> sure. we forget there is an election coming up very soon. last year, french markets hold off materially. i think italy probably has not participated in the selloff in late's -- rates over the last few weeks. jonathan: mispriced for how much? is this get in and get out orders it something that will ?ave a more sustainable upside >> i can't make a promise. i think it is a more structural trade. if you look at the dependency ratios, that demographic issues italy is facing over the next couple years is not a pretty story. i think it is more structural ,ut in the near term, the ecb the vast majority of the debt -- jonathan: you talked about how you'd be willing to short japan but -- >> we've had short positions going back to 2005, especially with greece and italy more recently. shortingtimistic, i am italy right now because it seems to be a one-way trade every day were spreads continued t

u.s. treasury that said five banks which at that point didn't include. were money laundering two of those banks were fined millions of euros by latvia itself and three banks remained under suspicion now would be accused of of basically being a tool for offshore companies to funnel money to the north korean regime in this current environment those are very serious allegations and they came from washington not from here in europe and briefly what's the european commission have to say about all this. well they were asked exactly about this whether we can have any faith in the european and the european union's own supervisory authorities that they're basically following the u.s. allegations the commission not surprisingly say it does have faith in european union banking supervisory authorities and they point to the e.c.b. action imposing a moratorium on v as proof that the e.c.b. can take effective action but again we should point out that these are only coming because of the liquidity problem following the u.s. treasuries allegations last week teri schultz

u.s. treasuries, mixed economic data from the u.k.ope and -- volatilityges of from the recent corrections. let us revisit some of the most interesting conversations about the markets starting with adam , scheetz who said a february selloff in stocks was "the appetizer, and not the main course." >> it is never possible to be as precise as you would like to be around these things but when i orcast, our economists' f you really do have two overlapping themes that crossover in the second quarter. you will have inflation picking up, not just in the u.s. but in the eurozone and in japan. at the same time, i think that we see a number of activity indicators including global , economic indices are going to be moderating. and so, it is not necessarily that it is going to be a recession or a sharp slowdown , but that the rising inflation numbers will seem potentially more worrying when the economic data is not as strong as it has been. >> that is a fair point. let's take a look at what yield you are watching. they look at the 10 year and they s

u.s. treasury yields are heading. n the strong fundamentals in em, we do think this will take a backseat. it will come later on in the when investors have a good handle on where the treasury yield is going to be. tracy: what is your expectation for supply? there are a lot of moving parts. the rising oil prices might mean there is less of a need for the government's to issue debt. there isme time, higher benchmark interest rate, and the premium is declining. what happened? issuer, there would be a sense of urgency for me to issue. youou wait long enough, will have to wait more. there is that urgency for issuers to come to market right now. how much volatility are we going to see in the treasury market? kendo shores asked -- can issuers access the market right now? last year was a record year for bond issuance. we think it will be another record year. deficit, as of a -- as a result of a run in oil prices, maybe was -- reduced. governments may not be issuing as much. the corporations well. yousef: what are you telling su

u.s. treasury. >> question? the question is, in light of the need for a balance of payments deficit on the part of the u.s. to supply these reserves, will you consider giving the imf a green light and encouraging them to promote a larger role for the sdr? >> i don't agree with the economics that you postulated in the question, so i don't see that there's a need to address that through sdrs. >> rick kessler. since bill roth and jack kemp and my old boss were on my board at the same time in those days, my question is this, david. how do we get the global institutions, some of which you named, how do we get them also to allow u.s. products and services abroad to have a chance to showcase? example, mcc, we give tremendous amount of money. many u.s. companies are actually stopped right at the border from ever participating in those contracts. we see this time and time again. so when recent development at the u.n. where a u.s. firm actually got a master agreement, but we see almost everywhere i travel around the world

u.s. treasuries. when we will get there and maybe 4% is the new three so let's get to first word news with all allen in sydney aaron. ♪ paul: leaving with an immediate effect into inappropriate behavior. an external inquiry found that there was inconsistent product -- conduct with the company's code of conduct. controlled isreal being overwhelmed by casualties of a bombing campaign by pro-government forces. hundreds of people have been killed in recent days and almost half a million are being forced to live rough in makeshift shelters. one hospital says they have 17 beds for 80 items. russia has overtaken china as the fifth largest sovereign holder of gold. the central bank raised its .oldings to 1857 tons russia has increased its holdings every month since march 2015 while china left reported buying gold in october 2016. the u.s. remains the leading owner with more than 8000 tons. the trump administration says the dramatic advances in space travel require a new set of rules. overly regulations are bu

u.s. treasury being mindful. anna: jeremy, thank you very much.ting your friday morning started here on bloomberg. you have to switch off bloomberg television, you can find the bloomberg radio live on your device or on your digital radio in the london area. , upheaval at anbang. chinese government seizes the insurance company and will charge the founder with a alleged fraud. we had to beijing. and japanese inflation stalled highlighting the challenge ahead for corrode as he prepares for another term at the boj. this is bloomberg. ♪ anna: good morning from london. six: 18. stormy skies above singapore. that is not going to lift anyone's friday mood. us get a bloomberg business flash. here is deborah. phoenix group holdings is said to be in advanced talks to buy standard life aberdeen's insurance unit for about 3 million pounds according to people with knowledge of the matter. phoenix plans to raise one billion pounds of capital to pay for the deal which could be announced as early as today. representatives from both firms declined to comment. bloom

white the u.s. , -10 yearvidend yield treasuries.ng yields i just dividends only 1.8%, you can see investors are turned off by that dividend yield. here is europe. it is a different story. take a look at the blue line. that is the stoxx 600 dividend yield. , minus payout of 3.6% moons, which are 70 basis points. it is much more attractive for investors to buy european stocks over local debt been for u.s. investors to buy their domestic stock over u.s. treasury's. guy: it is going to be interesting to see how this plays out for european companies. matt is waiting to go skiing, but he is not done yet. .loomberg radio is up next we have another hour of his company to enjoy. digital radio is where we are both heading this morning. surveillance" is up next. this is bloomberg. ♪ governornk of japan's has granted another five-year term. down friday, and european industries head higher. volatility continues to retreat. is fear taking a backseat once again? and saving this city. reports that britain is ready to lay out the post-brexit vision.

u.s. treasury and the final decision is up to the u.s. congress because you've got to say that the treasury hasn't expressed its own position on the matter now as for what the list means for our kind so speak for officials in the ministry agencies well at the end of the day she doesn't really mean much we don't have any foreign bank accounts or own any property abroad everything using russian technologies and russian banks are the property we have in russia i didn't feel in any way limited or restricted after the list was published . and we heard the theory that because the confrontation between the trumpet ministration and the congress runs so deep r. and b. cost of congress pressured the treasury to put as many people on the list as possible the creators of the lease just include it the entire russian government almost as if they were mocking the congress. looks like she wants even trying you know it is silly yet just listed all of the officials and all of the business with considerable assets both in russia and abroad she didn't really

u.s. treasury yields are currently higher than u.s. dividend yields.t an average dividend yield on the s&p close to 2%. that is giving you a warning signal for the s&p. one thing that is interesting, coming back to your question, is that will we get a reversal in the underperformance of the euro relative to the states, and a reversal in the underperformance of japan versus the states? if we see a weaker euro plus the fairly dovisht a signal over the next month or two, relative to what we are getting out of the fed, then i think this underperformance of the euro has to rivers. for a long short position it is absolutely -- i would flip that position. if you pull the wei screen, you can see the big differences that currencies, the losing currencies make to investors holding it depending on where you are domiciled, and your targets are. do you think if the u.s. dollar strengthens maybe you want to , by u.s.ite more hikes stocks because that is a way to cash in on the increasing currency? i think you just buy the currency rather than the stock. the way i wo

u.s. treasury yields and the u.s.d maybe the euro question mark we are seeing the 10 year 2.889. kit: it is not a very strong correlation at all. charts so that there is a better correlation between the slope of the curve than the yield at this particular point in time. the dollar was suffering from rising yields elsewhere. your seals popped higher in the dollar did not get a lift at all. confused is probably the best way to think about it. since november 9, 2016. is dollar-yen a good reflection of the true value, or should we look broader? weighted yene against the dollar-yen chart, and see that that was not nearly as to maddox. it strengthened a little bit, but it is not -- not nearly as dramatic. it strengthened a little bit. that might be important for the bank of japan. mark: is there a level? is there a speed of rate where they might be concerned, might even counter intervention? some are saying 5 yen over a couple of days? control.s more losing japanese foreign-policy where we have seen sharp moves in history,

u.s. treasury sold securities to rebuild a cash balance.th debts arising to levels unseen since 2008. demanderings grew decent following the recent debt ceiling suspension. the next two days, both offerings larger than last month. recovery continues as regulators in south korea signaled they will support what they call normal cryptocurrency trading, having hinted on a ban, they now say they want to be open and transparent trading. bitcoin almost double its intraday low on february 6. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. ♪ yvonne: let's take a look your market open. a little bit of nerves in the market. bond market and treasury options, but also a letdown in earnings when it came to walmart. for the latest, with sophie kamaruddin. >> nerves, indeed, when you see the open and seoul and tokyo. 0.2nikkei 225 losing percent. when it comes to the recent yen strength, that is a concern, should it remain persistent, given it raises the ris

u.s. treasury yield two-year treasury notes are yielding 2.19% the ten-year, down a little bit at 2.89% theving on the housing market >> let's get to cnbc's diane in olick. this affects so many people. >> everybody that owns or wants to own a home. mortgage rates are now at their highest level in over four years moving higher this week along with bond yields mortgage rates loosely follow the yield on the ten-year treasury the average rate on a 30-year fix jumped after the presidential election and fell back a little bit for much of last year. back in the 3s at the end of last year. only to start climbing this year it is all about inflation and the potential for the fed to raise more it is now up more than .5 of a percentage point since the start of this year it could not have come at a worst time this. weekend is the unofficial start of the spring housing market and buyers are already facing red hot home prices because of the steep competition for a record low price of homes for sale. you may say, we are still in the 4% range, which is historically higher buyers lose purchasing power for ev

u.s. treasury and other bond yields.you look at previous market panics are shots, you saw strength in the end. you saw strength in the swiss franc. it recovered a little bit. you have not seen strength and u.s. treasury bonds. it is very clear that the economic backgrounds. the trend in bonds clear -- yields are up. manus: the whole point of the daily prophet this morning is that the bond market was so calm, and here we go with levels that were predicted since the start of the year. there is much were to go through. some more red headlines. anna: we mentioned this earlier. share, that offer is best and final. they were also suggesting that they need support for their they saw support for their offer among stakeholders. manus: there's a merger pack that includes $8 billion of termination fees. it is money. coming up on daybreak, we have china's factory inflation data. does this signal waning support for the government inflation tread? we are live in beijing. anna: the bank of england suggesting it may need to raise rates

u.s. stocks are mixed today. treasuries retracing now as a toing of auctions of be billion dollars gets underway -- $250 billion get underway. -- pizza party. we speak with domino's ceo patrick doyle about the company's fourth-quarter artificiald why intelligence may be taking a key role in their delivery strategy. taylor riggs is with us. taylor: a bit of a mixed picture here. you have the dow jones off .2%. the s&p 500 up .2%. upeye is on the nasdaq, almost .8%. i'm thinking the qualcomm bid that was revised higher is pushing everyone else higher today. whathing i'm looking at -- is not higher today, the next short positions on the nasdaq 100. we are taking a look at net shorts. we've had a good record month. my eyes will be on what happens here with the nasdaq 100. some of the other stocks we are watching today, the movie theaters. black panther had incredible opening over the weekend. are the ones i'm looking at. amc had one of the biggest sunday's in history. they are keeping a look on the theater stocks. we are lookin

u.s. treasury yields.s next with bloomberg. ♪ >> one thing you have to realize -- industry has gone through the chart. this is a comfortable region to be in. we think the oil price will range around $70. we think the market will bear it. updatectober, we gave an of our first half, which is july to december. 900aid we would make around million to 950 million. just digesting quite well at the moment. >> very interestingly, over the last three to four months, a lot of activity. because theis growth in the industry is higher than originally expected. because of it, people want delivery. just some comments from our guests today. let's get back to singapore right now with our reporter juliette saly. juliette: now i am with ceo alexander. we had some comments there about the increase in fuel. thank you so much for joining us. in december, it you set -- you set a record earnings. what impact does the rising oil prices have? >> you may be impressed by the number profit. it is a small number relative to our revenues

u.s. treasuries on the move again and that could increase the pressure here on wall street but that is wednesday so at least at the beginning of the week we did see the recovery going on for a second consecutive day and hands beginning of the week trump or so unveiling his long awaited infrastructure blueprint how's it looking and how's it going down. a lot of traders who are saying well that's good news in general if we might see a huge infrastructure program of about one point five trillion dollars in the course of the next ten years but there was also some head scratching of how likely it is that this idea will pass because the white house idea is that the federal side will chip in about two hundred billion dollars and the remaining one point three trillion dollars is supposed to come from cities from states and from the private sector and of that's very likely well there is a doubt here the u.s. president will meet with key members leaders of the democratic and republican party old saw on wednesday and discuss further details whence there seems to be the day of this week so far yes go to fol

u.s. treasury prepares to sell $15 million in notes. to be taking action to protect its supply of cobalt, the competition for the key ingredient needed for batteries and why the electric car boost could cause a shortage. let look at european equities and where they are trading under 30 minutes until the close of equity trading in europe. on a regional

u.s. treasuries by the most since 2010 and now holds a little less than $1.2 trillion in u.s.ave killed a proposed chinese linked takeover of the chicago stock exchange. transaction would've been relatively small, and would have given 29% to a china-based shareholder. resolvecould not concerns about the proposed ownership structure. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. tom: thank you so much. thrilled you are with us this morning on this friday, as we try to bring together the threads of the last few days. volatility unfolded into market and economic analysis. we do that with isabelle mateos y lago. sri-kumar. us, komal adam posen will join us next hour to give a tapestry of thought. buys for been -- you do not 3% trump growth? and wei do not buy that, are starting to see signs of that happen with the retail sales numbers we saw, sharply down, in yesterday's industrial production number. it was expected to rise. withu had the situation the fed continuing to increase inte

u.s. treasury delivering real yield relative to the bones, relative to japan. yield argument is one that benefits the u.s.. is, the marketn has built up the most staggeringly short position in u.s. treasury's. that we areerned just going to run out of steam? or does the real yield argument hold for you? guest: in the next the month -- six months i do see yield rising. are you a goldman sachs kind of lady? a 3% kind of lady? guest: let me put it this way, three to nine months i expected to rise. , i think the fact that this has been a very long economics spansion cycle and at back,tage, if it comes the economy may begin to slow a bit. the steam may go out by mid next year, then it needs to come down. then the yields will be stabilized. yousef: the other issue is inflation. have jonathan setting the tone a little bit for what he expects going forward. it seems to me, the fed policymakers are little bit more comfortable targeting a rate like 2.25, but they can't take in public because of the dynamics of the fed. where is inflation going? guest: right now all factor

u.s. treasuries.ou cannot just look at what is the yield differential between the euro-been omitted asset and the dollar asset. you have to look at them on the same basis. yields worldwide are about the same which is one of the oddities of the market today. julia: perfect storm. lisa: we will be following this perfect storm for a long time. thank you so much from ivory jersey of bloomberg intelligence. on friday you can get a recap of all the options on "bloomberg really yield." that is each friday at 12:30 new york time, 5:30 in london. coming up, catherine keating, ceo of commonfund which over sees $34 billion. from new york, this is bloomberg. ♪ julia: this is "bloomberg markets." i'm julia chatterley. lisa: i am lisa abramowicz. time for the biggest business stories in the news right now. chief executive officer jeff horowitz has stepped down. since taking the helm in 2014, his efforts to improve operations have failed to turnaround performance. gap's comparable sales have fallen for 13 of the pas

u.s. treasury's, it shows you they have not backed away. january is about yield gains and a brief blip on monday and tuesday perhaps, straight back at it, rising yields, that has caused inflation because an increase u.s. treasury issuance, tax reform, because of the influence of changing softly, the growth in the strengthen economy is finally seen through, as it should. inflation means higher bond yields and higher corporate borrowing costs and leverage plays are more risky and the rebalancing of risk. oil coming down at the same time while china passing markets after portray days. shakeout --nger this is a bigger shakeout. vonnie: that was some list of warnings. prioritizehe market when it comes to the risks? people are talking about over indebtedness and sovereigns -- in sovereigns, will that be it? >> everyone had gotten themselves too confident and perhaps over levered. we had a nasty rude awakening monday and tuesday. what is more important now is that yields continued to rise. the trend is in place. inflation is the real issue and nex

u.s. treasuries, are you? >> yeah. when you look at the demand. the demand has come from foreign buyers that's well and fine when the foreign buyers bought treasuries for negative interest rate policies and also for cny flows, for oil related flows. you have 5$508 billion of issuance coming from a rolloff or new issuance of treasuries due to the fiscal plan trump put into place i don't see where those buyers come from. to say you're going to get atrey market, you have to assume cny will go down to 6 or oil prices to 75. all you're seeing is a recycle of flows where these two guys have been buying treasuries. the domestic demand has been quite subpar so i just don't see, give than we got so much issuance coming over the course of this year, i can't find a natural buyer the same for me applies to equities hence this bond equity correlation story will come back i think you will have some respite, maybe that's today or tomorrow i still think there's an awful lot more flows to be enacted risk parity and cta have not done the dlef releveraging they to do

u.s. treasury. what is the thesis behind the first one? think that long aussie kiwi is about rba more hawkish. economic data has trumped economic data out of new zealand. more importantly, we had quite a big miss in new zealand inflation a few weeks back. technically, it feels that the aussie dollar has been underperforming versus the kiwi. technicals, but where the trend and economic data is going in the central banks as well. david: in terms of the third one, long treasury, i would imagine that comes down to this widening spread. do we get a reversal of flow only hit 3% in the tenure, and the third one starts to make a lot of money? kay: that is the right-thinking. talked about one treasury close to two years now. obviously, a crowded trade and everyone is in the same room. we were lonely for a wild. this is something where you may be shorting a potential pullback for u.s. treasury, especially once week get tours 3%. there -- towards 3%. there is a lag affect in eurozone yields. haslinda: but they are still playing catch-up? kay: it is.

u.s. treasuries falling out of favor. i'm afraid that u.s. easuries are falling out of favor and that's causing this volatility >> so this correction could continue >> i think so. i think we'll have a move down in bonds, up in yields at a faster pace than we expect that's causing volatility. >> to add to that, the last couple of days we got to 2.85 in yields, you think it's a temporary blip and yields will go much higher >> i hope the pace is not too fast the faster the pace, the more the volatility from a technical point of view, you could see 3 1.5, 4% on the ten-year >> the next chart? >> this is the s&p 500 weekly. >> this title is correct >> yes i love this chart. when markets get crazy, volatility kicks up. people get emotional let's step back and say this is what we're talking about here. we are still very well contained in this beautiful uptrend channel. the real test will come down around the 200 week moving average. this is around 2200. uptrend support here at about 2300 that's the gateway to the downside that's when this central ban

u.s. treasury yields are under pressure out to about five years. issuance of treasury bills will put funding pressure and yields higher in the front of the curve. curve isend of the holding much better. some of the rise in 10 year and 30 year yields is because we were coming up to auctions midmonth. stabilizationme below 3%. we will rise higher. the increase in yields in the u.s. or in europe next year are -- i don't rail think the increase in yields in the u.s. or in europe next year are going to derail. one thing we have not seen yet is the full effects of the tax cut. it could drive inflation and affect the yield curve. what do you expect through the rest of the year? i don't know if the tax cuts will affect the long end. in a hiking cycle, usually the very long and is the place to be. that yield the case increases are higher on the long on the front are end. hikes are priced into 2018, little bit in 2019. themre seeing globally move towards flattening. seeing real money, european investors buying long and italian and spanish debt, where the yie

u.s. treasury markets. i think the u.s.rted the trade war with time already with the tariffs on washing machines and calling the currency manipulated. i think we have already started back. haidi: what is her best call for what an investor does in this environment? >> for investors, you have to decide what kind of risk you want to take. 2017.ooks a lot like you still need to keep some money and equity markets. it is also time to take a little bit of risk off the table. something that will perform in that riskoff environment. views,thank you for your as always. catch up on all of our interviews. join in on the conversation and send us instant messages during our show. this is bloomberg. ♪ showing increasing appetite in alibaba's delivery network. stephen is joining us now with more. we are asking the question. very hungry. he is trying to fill up his logistics empire to the phil and to end solutions in the alibaba platforms. he is setting up these new retail platforms where he wants to use the supermarkets as settlement cente

u.s. treasuries around this level >> i think we probably would still like to sit on the fence for a monthr two before then we like getting long after a little bit of hubris drops out of the market then get long later in the year. >> stay with us. we have the uk inflation data coming up shortly. we'll get into that. coming up on "street signs," we will get the latest reading on uk inflation just days after bank of england governor mark carney said brexit will have a massive impact on households. >>> also coming up, we'll take a deep dive into the future official intelligence with a star musician. do not go away jimmy's gotten used to his whole room smelling like sweaty odors. yup, he's gone noseblind. he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher. febreze doesn't just mask, it eliminates odors you've... ...gone noseblind to. and try febreze unstopables for fabric. with up to twice the fresh scent power, you'll want to try it... ...again and again and maybe just one more time. indulge in irresistible fre

u.s. treasury. how many? we don't know. leo, i know i'm late. oh! my wallet! card lock from capital one. instantly lock your credit card. in case it goes... arrivederci. mona! that smile. technology this convenient... could make history. what's in your wallet? ♪ ♪ ♪ >>> happening right now on capitol hill, white house communications director and long time donald trump aide hope hicks is with the committee. this is her arriving with her attorney to that closed door meeting. we're now sure how long it will last. we're not sure how many questions she's going to answer. we'll bring you updates throughout the morning right here on msnbc. it comes as hick's boss, president trump, is trying to clear up one of the potential conflicts of interest surrounding his presidency. the trump organization athounnod monday it donated profits to the u. u.s. treasury. that announce didn't didn't have key details like how much money the president is donating or how the organization calculated profits in the first place.

u.s. treasury note yield is going to do, what is your forecast?> we've been underweight treasuries since the beginning of the year. we went underweight at the end of last year so waiting for this, however treasury rates are on the rise, we are seeing the unemployment rate gap close we have seen a lot of evidence that tells us that interest rates should continue to rise. that said expectations for inflation will likely be disappointing. but that doesn't mean you shouldn't stay away from treasuries probably for at least the first half of this year. >> gina sanchez, thank you very much for joining us to talk about rates and the inflation outlook. >>> it's a busy day ahead for economic data. weekly jobless claims are out at k 30 a.m. eastern along with january ppi and the monthly philly fed survey. at 9:15 a.m., industrial production look for results from cbs and shake shack after the closing bell. >>> cisco systems posting a net loss in the second quarter due to an $11 billion tax related charge but excluding those items they reported their first qua