 Simon Michelle is joining us live from Fig Securities. Simon thank you so much for joining us now tell us what we've been seeing in the bond market we've been talking about money flowing into safe haven assets you know gold's been in focus the dollar and so forth have we seen bonds tracking? Good afternoon yes and you're certainly seeing that reflected in the bond market also we're seeing good strong demand pushing yields lower that pushes bond prices up and right across the curve as well it's interesting if you look right out to the 30 year and now back below that 3% level that was as high as about 3.18 I think in December so it's really interesting I think people who take some profit I think investors are cautious I mean certainly not seeing an increase in inflation or growth reflected in the bond market unlike what you're seeing in the equity markets recently. That is interesting are you surprised by that? Look not really I think the bond market really wants to see some detail so you know it's it's a much longer dated people are taking much longer views so people tend to look for more certainty and I think that you know as you see some policy movements come out of the US you may see the bond market correct and reflect that but at the moment they're they're sitting pretty quietly. Now obviously you know I've heard a lot overnight on Donald Trump's protectionist policy certainly putting those words into into action and I mean he's only been a few days in office right now. What do we expect going forward in terms of rate increases because a lot of it is coming down to fiscal spending tax cuts and so forth are we seeing the bond market adjusting its view at all in terms of the rate increases we're expecting this year? Yeah well that's interesting as well because we are certainly starting to see some stronger rhetoric from the Fed from board members of the Fed suggesting that we could see a larger number of increases through this year than previously anticipated but the market the futures market still just looking at two two increases for 2017 so it hasn't really adjusted that either it stayed fairly benign through this exuberance I suppose we've had and you'd certainly not seeing any movement so the market it's pretty steady as I said strong demand so investors are still very happy to lock into these levels too you're not seeing a behaviour investors positioning the higher rates anytime soon either so that'll be interesting to see. Yeah absolutely now Aussie yields tell us how they are tracking in those credit spreads I mean they look like they tightening up further. Well this is the thing so credit spreads tightening means people are happy to take on more risk that's positive they're taking on you know more lower ranked bonds but at the same time you're seeing and at the same time I should say you're seeing rates move lower that reflects higher demand pushes bond prices up that's a positive for those people holding bonds so you know I think it's certainly seeing although not reflected in the marketing markets today you are seeing a little bit of profit taking a little bit of moving to that safe haven happening here in Australia as well. Bond issuance tell us more. Look Sanity have really ramped up we had that huge Aussie government bond issuance last week and we've had a number of non Aussie issuance or offshore issuance a lot of state-based issuance come to Australia looking at funding today and we also have Suncorp Metway looking to do a RMBS or a residential mortgage backed security so this is a basically an issue of mortgage backed security to the market as well so we're certainly seeing a larger volume of issuance this week. Just a quick final thought I was reading some commentary this morning investors also seem to be cautious ahead of more bond supply so US Treasury is going to be selling I think it's about 26 billion dollars in two-year notes on Tuesday 34 billion on Wednesday I think about 28 billion in those seven-year notes on on Thursday is this something that you're watching. Look we're certainly keeping an eye on it I mean there's also been a bit of talk by the Fed about when they might start to unwind the holdings that they the Fed's holding as well but look we're just seeing so much demand come up and it's not just not being reflected in the prices look if you start to see investors not stepping up to these these tenders and taking advantage of these bonds then you could certainly see those rates start to drift higher but at the moment you know and this would have affected our own bond issue last week you know we're seeing well over one time spin for these bonds so I don't anticipate we'll see any any volatility in those issuances over the next couple of weeks. All right excellent Simon we'll wrap it up there it's been great having you on as always thank you so much. Afternoon thank you. Simon Michelle.