 Good morning to CMC Express from the Frankfurt office of CMC Markets. Bill Cross, the bond king, fixes his wagon with the negative interest rate policy of central banks in his latest investment outlook for June. Since the inception of the Barclays Capital US aggregate, Olimet Bond Index in 1976, investment credit bond markets have provided conservative investors with 7.47% compound return with remarkably low and little volatility stocks gained 3% points more, but there was also more volatility to compensate for the extra return. But this is all over Cross says for over 40 years asset returns and alpha generation have been materially aided by declines in interest rates, trade globalization and an enormous expansion of credit, in other words debt. Those trends are coming to an end the bond king writes in his investment outlook if only because in some cases they can go no further. Those historic returns have been a function of leverage in the capture of carry producing attractive income and capital gains. A repeat performance not only unlikely as Cross puts it, but it is impossible. But in the end an investor must eat something to avoid starvation as he uses this metaphor for the yield that an investor has to somehow get. So for the time being they are being fed those delicious Kerevich and greasy French fries from the central banks as Cross puts it, but they will turn cold and rather quickly get tossed into the garbage can. So what he says is that actually the use and the effect of central bank monetary measures has decreased with every new measure that has been put in place. Meanwhile, the price earnings ratio of the MSCI World Index has climbed to its highest level in six years. For every pound a global company earns investors are willing to pay 21 pounds just to be allowed to invest in the shares. As Cross says funds must eat something, but because of the high equity valuations they go for bonds regardless of how deep the yields might be, yields on government bonds of developed countries fell to its lowest level yesterday and that was the lowest level ever. An auction of 10 year US Thrasheries was closed yesterday with the highest ever recorded demand from foreign central banks and in Japan the country's largest bank Tokyo Mitsubishi stopped the trading in government bonds. So while they were bond traders, they were committed to buy at least 4% of bid for at least 4% of each government bond auction and this has become too large a risk given that most of the yields in those papers are negative by now. So I'd like to close my CMC Espresso video today with the same salute as Bill Cross closed his investment outlook. Bon appetit.