 trading day well we're going to take it a bit of a closer look at bond market action now let's bring in Simon Michelle from FIG security Simon good afternoon great to see you there these global yields bouncing off record loads to finally follow equities higher good afternoon Leanne yes absolutely so we saw yesterday that while we saw equity markets moving up yields continue to fall and that was really on continued demand for bonds we've seen that reverse today and we've seen bit of a recovery yields up about five basis so you know it certainly looks like people moving back out of that safety and into more other asset allocations and I guess a lot of it came off the back of Japan's Prime Minister sort of ordering this new round of stimulus reducing the demand for these safe haven government bonds is that why part of the reason why we've seen you know these moves look I think so you know I think the market you know starting to feel a little bit more comfortable around some of the volatility we've seen certainly expecting for the stimulus we expect to see the Bank of England lower rates for example later this week I think an RBA rate cut here in Australia was certainly not off the cards depending on how that CPI prints later this month and I think the other thing is a view that the US will can have to continue to delay and I think market virtually pricing no further increase from the US Fed so pretty positive sentiment I think Leanne okay so later in the week I mean as I guess as we had sort of throughout the week do you think we can expect to see stronger demand for some of these auctions the 10 years and 30 yields and so forth yeah well that's interesting we had the softest demand for a US three year Treasury auction last night the softest since 2009 I think there's a couple of things driving that obviously you know very very low rates at the moment we're certainly seeing greater demand out in the 10 and 30 year Treasury is as investors are happy to take on additional yield with a view that they don't really see those longer term rates moving up anytime soon so I think you've hit the nail on the head I'd like to see how demand goes for the 10 year and the 30 year auctions we get later this week in the States you should see higher demand for those okay Aussie yields as well I guess a lot of expectation now around the RBA and so forth with a cash rate where it is the RBA I suppose is in a much better position relative to a lot of its other peers who have almost exhausted a lot of their options well that's right and that's certainly noted that you know at least our central bank still has a little up its sleeve and you know as we've seen Bank of Japan as you mentioned and through Europe on the back of this volatility more countries just drift into negative territory they're running out of ammunition so you know at least here in the in Australia at a cash rate of 1.75 there's quite a bit of room to move and you know I wouldn't be surprised given that global movement that global downward movement in rates that the RBA is going to have to pretty match it we've seen the dollar strengthen you know if that dollar keeps moving up it's out of Glenn Stevens hands he's gonna have to lower the cash rate here as well yeah good point all right Simon we'll leave it there really appreciate you joining us thank you have a lovely day thank you