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00:00Your view on how you'd gauge when this bond market has topped ultimately in a world where you expect this Fed to start moving in the other direction sometime soon. Yeah well you know to be honest you know the move has been surprising. You know we got well ahead of the need for the Fed to pivot. But you know when we hit 3 percent I thought we were close to done so and we hit close to 350. I just didn't think we would be able to sustain that for as long as we did frankly because I thought we'd get a risk off that was even more severe. I think equity markets in particular are very sensitive to the rate market. And if you recall 2018 we got to about three twenty five and equities couldn't handle it and frankly forced the Fed into a corner. After that December Powell speech we talked about autopilot. I think we're in a similar situation here and I think that long and move is relatively down in the curve is gonna get flatter and it will invert as we continue to risk off now standing this bear market bounce and start to see the economy slow into the end of the year. It's not a constructive view in the long end of the curve or less constructive view on the front end of the curve which delivers that flattening. Yeah no. Great great great question. You know to choose to surprised us as well relative to how high yields have gotten. But I think 10 year yields will will move lower because of the risk off and equities which will result in a reflexive flight to quality while two year yields will remain relatively stable. Because as I mentioned earlier we simply don't think the Fed's gonna be able to get all the way there before equities. Rascoff And before the economy shows that shows the sort of strains of the tightening that the markets do for the Fed.

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Yield Curve to Get Flatter, Invert: Axonic's Cecchini

Axonic Capital Director of Research Peter Cecchini reacts to climbing US Treasury yields and says he expects the 10-year Treasury yield to move lower. He speaks with Jonathan Ferro on "Bloomberg The Open." (Source: Bloomberg)

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