 the banks down by almost a percent and a half in the majors as well but let's check in on bond markets now we've got Simon Michelle from Think Security standing by for us at the moment and Simon we're continuing to await that decision from the US Fed to increase Fed funds later on in the week where to next do you think yeah look it's interesting Kate and obviously I think most of the market now very much of the view that will get that tightening by the Fed in the US increasing rates likely by 0.25 of a percent off of virtual zero and that'll give the Fed a chance to reset their messaging around where interest rates are likely to go through 2016 looking at the yield curve certainly doesn't suggest we're likely to see a flurry of further interest rate increases could be very much that we see the Fed position markets for very steady rates through 2016 I certainly don't think this move that we expect this week is likely to lead to any succession of further increases throughout next year let's talk a bit about the strong demand for US treasuries at the moment because that's been pushing yields a lot ahead of the move hasn't it it has and we've actually seen that flow through into our market this morning as well and we've seen now yields off across the five in the 10-year doubt about five basis points so moving in the opposite direction is you would expect given that we are likely to see the Fed move on Wednesday their time and it really reflects a bit of repositioning prior to that announcement and also that week does we're seeing in commodities as well flowing over into people seeking a bit of a safe haven so seeing a bit of a sellout of more of the risky asset classes and that money's making it into bonds that demand is push pushing bond prices up and yields down okay I also wanted to ask you about the talk around this high yield credit space at the moment we've heard Carl Icon speaking about it and he says things are ready to explode it's at real risk at the moment as Janet Yellen prepares to make this announcement do you think those risks are being overblown they're certainly making headlines they are absolutely and I think people are very conscious at those sorts of cash movements we see leading up into these announcements and really this has sort of been occurring over the last couple of weeks really catered we've seen credit spreads wired and as investors have taken money out of more risky asset classes I think it's also been driven as I mentioned before a little bit by this you know lower commodities as well causing concern around some of the emerging markets as well some of the developing nations and their ability to meet debt requirements as as they fall due and so we're seeing a bit of consolidation happening and you know we'd like to see a little bit of a an unwind post this announcement once that uncertainties removed from the market but I think you know at the end of the day it does reflect a bit of a view that things are getting a little bit more volatile in some of those areas of the global economy and people are just repositioning out seeking the safety and comfort of bonds and waiting to see how this Fed announcement plays out this week fair enough and investors increasingly moving out of these risk assets even equities and I guess that means we might see continued volatility over the next couple of months I think so absolutely you know these significant changes in rates and you know let's let's put it bluntly the US has not moved these rates up for almost a decade now it's going to have a substantial impact on money flows it's the US Treasury yield curve is the benchmark for a lot of other nations of their bond borrowing and lending margins so you know I think you're going to see a bit of volatility as markets reposition and you know get used to this new environment and look at what is likely to happen to rates you know at the next rinse we'd like to see the next movement in US rates will it be 2016 or we'd like to see very very steady rates right through the whole year and what about rates here at home of course the employment dad we've seen out lately just continues to back the case that the RBA is either going to keep rates on hold for some time to come or potentially the next move we see maybe a hike what do you think yeah it's interesting isn't it I mean the narrative certainly moved away from this speculation about a further rate cut and I have noticed also a number of commentators suggesting the next move from the RBA could be northward I think certainly the Fed move if we get that this week and obviously the better stronger employment trend as you mentioned and also the stronger third quarter or September quarter growth figures we had certainly take a bit of pressure off the RBA for lower rates I certainly think they flow into the narrative you've had from the RBA that you know they're pretty comfortable where rates are they certainly don't see the need to make any adjustment in rates at the moment they've certainly suggested that they're willing to move these rates down if it's required but I think all of these elements we see at the moment minimize that risk so I think you know from the RBA we like to see fairly steady she goes all right thanks very much really appreciate it have a good day thanks I'm Michelle there from fig with the latest on fixed income will hot off the press industry super