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00:00[CC may contain inaccuracies] And I want to ask you what's going on with U.S. yields whilst Lizzie and I were to focus on the U.K. political drama. What's happening with U.S. legal yields and why does the inversion matter this time. So first of all what's going on is confusion lack of conviction lack of liquidity. I think the volatility we've seen in the last week will continue. And I've kind of said this a few times this week that short term I have no particularly strong view in the direction I could see yields continue to go lower. But I'm very clear that I do think that we have hired to go later on in yields later on this year in yields. I do think that in fact we have not seen the cycle peak in yields even in the two year sector. Ultimately the Fed will probably have to do more even more. That's priced in much more than is priced right now. But I think for the next couple of weeks it's about a lack of liquidity story. Why do we care more about the inversion this time. We just missed the inversion earlier on this year. Part of the reason was I mean there are many reasons. It's kind of a nuanced debate is that Powell himself said look he cares more about some of the front end rates. He cares a bit more about the three month rate versus the three month rate 18 months forward. Now the mini bill at the time said he's just cherry picking the one part of the curve that's still steepening. Well now that particular part of the curve that he cherry picked that itself is flattening very rapidly and it is getting close to zero and not makes the inversion this time even by Paolo's own you know clearly defined metrics a little bit more worrying. So I think Bill will pay more attention. I do think the US is heading for recession but I don't think the slowdown will come as quick or as harshly as people think. We are watching the euro and a lot of people asking if it goes to piracy either. Is there anything standing in the way of getting to piracy Mark. No not much. It's really bad timing now. I looked at the range for a year. A dollar was I think of like 214 pips in a day. I think it was on Tuesday in two days and a couple of hundred pips. So we're now only 210 pips from party. This this is a day's range for the day session. Parties will surely go. It's a matter of timing though. I mean I do think that next week will carry on the theme of kind of selling everything in Europe. I think that the concern around Europe and the gas and energy crisis will remain until we get clarity. What's going to happen on the Nord Stream pipeline beyond this month. Yeah absolutely. Does that flow return after the expected and planned outage for maintenance in the middle of this month. There's a lot going on in emerging markets. Why should we watch Hungary. Look I think Hungary's really it so many things go on in emerging markets but they've got a one week rate expectation today. This is basically now their base rate. Officially they have a separate base rate but they've aligned the rates now. Only recently they massively surprised by hiking up the rate much more than expected. Today 50 basis points expected ISE. And they might have to do 150 basis points. The currency's been in freefall until they got a common last night saying they could take decisive action today. So really we've got a massively wide range. It's a great trading opportunity.

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US Yields, Euro, Hungary Central Bank: 3-Minute MLIV

Mark Cudmore and Anna Edwards break down today’s key themes for analysts and investors on “Bloomberg Markets Europe.” (Source: Bloomberg)

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