 trading Simon Michelle joining us from FIG security Simon we're seeing these these bonds weakening particularly there on Friday yields moving higher stronger economic data I guess supporting the view of you know the Fed hiking rates sometime this year so very much seeing investors taking to risk absolutely good afternoon Leanne so after reaching those lows last week on concerns and I suppose people are looking to lock in some safety by increasing demand for bonds we are seeing that slightly reversed we're seeing people move out of bonds take on some risk moving to equity markets for example we're seeing that in our market here and also take on a bit more risk in the bottom bond market we've seen credit spreads or the risk premium on bonds narrow to its tightest point this year as well we did see some pretty solid economic data coming out of the US and that seemed to outweigh the the Turkish coup that we saw there as a result of that strong data we are starting to see that this pricing for Fed rate hikes sort of firming up yeah absolutely I mean I think you know on the back of Brexit and that flight to safety a lot of the market suggested that the Fed just wouldn't be in a position to be able to increase rates this year at all and really you know priced no action from the Fed but now starting to see people put that back on the agenda and I think that's been you know on the back of a more stronger trend in some of the data recently I think it will still be affected by global factors and you know if we continue to see more downward movement more central bank support as you've been speaking about that could inhibit the ability for the US Fed to move I think obviously if you bring that back here to local factors we're certainly expecting a possibility of the RBA cutting rates so you know there's still a lot of volatility about that in straight direction. Simon Tony Davison from Henderson Maxwell here I just note that some of the yields on the longer dated bonds out there treasury bonds for instance are at pretty much historic lows if you look at the 10 year in Australia the yield has actually slipped substantially in the last 12 months since the last S&P 500 high and yet we've got equity markets get continued to go up you know do you think at some point there is the prospect for a significant reprice in sovereign yields out there or do you think that this is just sort of a new normal that we're operating in? Yeah good afternoon Tony and look that divergence is really interesting I mean you've got the bond market saying one thing and the equity market saying the other and normally when you get that action one of them's not telling the truth and they come back into alignment I think a few factors here I mean obviously 38% of all sovereign bonds in the developed economies are now in negative yield there's not a lot of room for further movement by central banks or further support by central banks in that negative territory that cheap money is obviously making it very attractive to be able to leverage into some of those markets but I think that's being inhibited by the growth and inflation forecast so you know I think when I'm looking at the bond curve it's saying you know there's just not a lot of potential for growth over the near to medium term but investors are still happy to pile into equity markets I think on both sides of it it's really about investing on income not particularly not particularly on growth so you know it'll be interesting to see over the next three months whether it is the bond market that's giving us an indication of what's ahead or whether the equity market will continue that strength yeah it is going to be very interesting Simon we'll leave it there really appreciate you joining us thank you thank you very much