Shortly. What do you observe this morning, nejra . Nejra im observing headlines coming through right now from andrew bailey, in the core with journalists he is having right now, that it is clearly a commitment to take action, saying the qe program is highly aggressive and appropriately is so. Also saying there is no evidence the boe is targeting any part of the yield curve, but what is really interesting is we did see a little bit of differing views in terms of the decision today. There were policymakers that wanted to extend qe today, but the reaction to the fact we have had no change in policy today is coming. Analysts say we will get more qe in june or august or both, and the pound catching a bid off the back of the boe forecasting the vshaped recovery. That is what i find staggering. A 15 rebound in 2021. Tom i think you are dead on in that, nejra. There is no question what six out within all the excel spreadsheets and the heroic language at this moment, really with depressionera e
Doing. The one thing that has not rallied in this everything rally are long dated bond prices. Investors have been positioning for continued divergence in that correlation. We have had some better data recently. Inflation data did see a reversal of some of the weakness. A pretty positive environment for yields. We have seen an astronomical amount of data in this year. It is not in short dated treasuries, it is an longer dated. One of the most crowded markets is duration. You may be better off at the short end of the curve. If you get yields higher and equities higher, that is the pain trade. Jonathan joining me around the table to discuss is mike schumacher, kathy jones, and matthew hornbach. Kathy, lets begin with you. Maybe the biggest risk is the one in duration, not in credit. Thoughts . Kathy every once in a while they do ring the bell. I think with all of the easing, if we look back at previous quantitative easing cycles we have seen, we have seen the curve steepen and long rates
Doing. The one thing that has not rallied in this everything rally are long dated bond prices. Investors have been positioning for continued divergence in that correlation. We have had some better data recently. Inflation data did see a reversal of some of the weakness. A pretty positive environment for yields. We have seen an astronomical amount of money pouring in, and it is not in short dated treasuries, it is an longer dated. One of the most crowded markets is duration. You may be better off at the short end of the curve. If you get yields higher and equities higher, that is the pain trade. Jonathan joining me around the table to discuss is mike schumacher, kathy jones, and matthew hornbach. Kathy, lets begin with you. Maybe the biggest risk is the one in duration, not in credit. Kathy every once in a while they do ring the bell. I think with all of the easing, if we look back at previous quantitative easing cycles we have seen, we have seen the curve steepen and long rates move up