As of july 1, the longest Economic Cycle in modern history. You have to pick up the camp, either we are headed toward nearterm recession, or we are in a super cycle. Gershon, which one . Gershon always hard to say in the shortterm. Some of those people calling for lower rates are those that called for a 3 10 year a year ago. This is the only industry where you can be wrong again and again and people still want to know your view. It is really fascinating. The reality is, what europe has taught us is there is no lower bound. In other words, if equities are weak, if the economy is weak, we can go a lot lower, even negative. On the other hand, im not sure we should believe this will be the equilibrium rate of inflation. And inflation will only be 1. 5 over the next 10 years. Rates probably should be higher in the longer run. Jonathan lisa . Lisa it depends on how you interpret bob micheles call. He said rates would go to zero over some period of time, which is probably true. Jonathan a mul
To the lowest level we have seen in several years. They hinted at more cuts in the future. The treasury selloff is the big story of the day, hitting the long end of the curve drastically. We are seeing much more stark moves in the 10 year and 30 year yields, at the highest levels since november and fluctuating throughout the day. Eight basis point move on the 10 year yield and 30 year at about 4. 28. Earlier today, we asked george come call this about the movement and this is what he had to say goncalvas. It could be swinging from japan to the u. S. , it is sensitive for all parts of the yield curve. We are experiencing a wrecking ball from supply concerns to concerns around buying could slow down and all of that is rates have been staying under fed funds for a long time, that has been the saving grace. Sonali a wrecking ball in treasury markets, we have liz mccormick. When you look at the delusion of issuance paired with the downgrade the u. S. Is seeing, what is the Ripple Effect mar
Welcome to daybreak australia. We are counting down to asias major market opens. Kathleen good evening from new york. The top stories this hour,apples iphone sales disappoint overshadowing record Quarterly Services revenue. Amazon gaining after the bell as its Sales Outlook beats the street. Haidi u. S. Stocks fall as the bond market slide deepens ahead of fridays jobs report. The bank of england signaling a long period of higher rates. Kathleen and donald trump pleads not guilty to trying to obstruct the 2020 president ial election. A quick check on wall street. The stock market had some movement, waiting mostly for apple and amazon results after the bell. The big story, the treasury bond market, the 10year note fell about. 75 points. 4. 17 , the highest since november. The yield touching 4. 1 . Adp employment numbers yesterday suggesting maybe the u. S. Payrolls tomorrow, friday, u. S. , could come and strongerthanexpected at a time when jay powell and his colleagues at the fed are l
Guy every single sector in europe is in negative territory. The stoxx 600, which was already a key level, that is broken. Stoxx 600 now trading for 60. Every single sector is in negative territory today. The fence is doing better. Even that sector is lower. Single stocks, things are interesting. Hugo boss is interesting. Outlook maybe not quite as rosy as anticipated. There was an interesting line of working capital as well. Stock. They have more of it than anticipated, which is interesting. What does that say about consumer demand . Bae systems, it is one of the bright spots today. Take a look. The stock is up by nearly 5 for pretty obvious reasons. Think about what is happening in the world, they can about what is happening in ukraine, bae systems is going to be a beneficiary. With the body demonstration, in terms of how it is going to use the ukraine budget for taiwan. Bae systems is one of the huge suppliers into the doe. Dod. Alix i was putting out some of the losers on the s p an
Moynihan will join us for an exclusive interview live from aspen for his take on the economy, regulation, and more. Driven by data, the boe hikes 25 basis points as bailey points to a resilient u. K. Economy. We will have an interview with him in the next hour. Meanwhile, more u. S. Data is dropping now. Im kailey leinz with guy johnson in london. Alec steel is on assignment. As promised, more Economic Data breaking here in the u. S. Guy alix steel will return later in the show wearing a cowboy hat. Looking forward to that. We need to deal with the data here and now. The ism really stands out to me here. I think it is bittersweet. 52. 7. Some softening in services. However, prices paid rises to 56. 8. Employment softened from 53. 1 to 53. 7. New orders softened a little bit but not by much. The prices paid to number will be interesting to see how the market digests that one. I will dig in and see with a twoyear is doing on the back of that, not much yet. The action really in the 30year