 Now let's check in on how bond markets are fairing with Simon Michelle from FIG Securities. Simon thanks very much for talking to us. Now let's talk about not so much the French election but there is this impact that the Trump Administration's tax reform could have or will have on bond markets and we are expecting what a big announcement this Wednesday. That's absolutely right Helen good afternoon and we've really seen a bit of a reversal of that safe haven flow we had right up until about the middle of last week and in the last couple of days we saw people or investors happy to take on risk and move back into equity markets, move out of bonds, take some profit in those yield curve movements and that's really been driven by Trump communications that they've got a big tax plan coming there's likely a bit of release on Wednesday not a lot of detail around that but investors are obviously happy to see a bit of detail coming out this week in addition to obviously some easing geopolitical concerns on that French election as you've mentioned. Yeah and it is interesting because I guess the the risks of France leaving the EU they have eased on this first round result? That's right really so Macron really who is is anticipated to lead Le Pen in the next round of voting is pro-EU so that volatility that was likely to emerge should you see France also go down a leaving the EU has seemed sort of eased a little bit investors are a little more comfortable likely to be a little bit more status quo so I think investors are sort of comfortable with that moving back into equity markets as we're seeing. Yeah so Simon do you think there's any possibility I mean I don't want to be the doomster at all but is there any possibility that the market sort of is breathing this big sigh of relief but in fact Madame Le Pen has a good chance there's only now two candidates. Look polls have not been very well received recently obviously on the back of the EU selection so you know there are there are elements that don't really read a lot into the polls suggesting that Macron's about 20 points ahead on a two you know two case basis but I think that you know it's going to be tougher for Le Pen to get there I think and I think if you sort of take the votes from those people who voted for the alternate two candidates they've got to find a place to go and I think you're probably going to see that's likely to support Macron over Le Pen. Yeah all right let's talk about Aussie yields now they've gone higher what's the story? They have so they've basically also followed the US up I think again investors feeling a little bit more comforted moving out of the safe haven flows moving out of bonds and moving back into equity markets we're seeing you know increased demand for high yield bonds as well that's pushing the risk premium or spreads on bonds down as well and we saw that four by about seven basis points so really I think you know if you if you think about it we've really had a month of you know you know concern in market a month of you know quite a bit of volatility you know bond yields out in the 10 year it's down about 40 45 basis points that's a significant move we're now seeing that unwind as some of these things work themselves through the system. All right sorry so the Aussie 10 year are at what? So the Aussie 10 year today as we speak is looking at 2.6 percent that's up about five basis points and up about 15 to 20 basis points from the low that we saw back in March. Yeah so how are you seeing the US dollar it's what round just over 75 yeah it has been there thereabouts for quite some time do you think the RBA is happy at that level. Look it's been bouncing around there and it's been sort of up and down a little bit and I think you know we certainly saw a little bit more demand come through as yields fell and that was an investors looked for additional yield over the US treasury so we generally get a bit of an increase in demand for Aussie bonds and you certainly saw that when they reached their lows. Well I think the RBA is pretty comfortable that it's obviously like to see it drift lower they certainly don't want to see it drift higher and I think that you know if you were likely to see that Helen you are going to start to see the RBA talk about the need to perhaps look at lowering the cash rate so you know I think that you know around that 75 as you said it has been hovering around there think they're pretty comfortable the Aussie or the RBA I should say really want to see the Fed continue increasing rates they don't want to see any delay to that otherwise it puts pressure on them having to maybe adjust our rates down. Yeah all right well let's talk a little bit about Aussie issuance now Volkswagen are possibly going to issue. That's right so not a lot of issuance around but one interesting one is Volkswagen Australia and they're looking to do an asset backed security issue so this is essentially Volkswagen Australia finance selling off of their balance sheet motor vehicle loans that they offer to their customers and so they've done an issue the last issue was back in March last year around 500 million Aussie so we're anticipating that they might be going to the market again over the next week. All right Simon, Michelle from Fixed Security is always good to get your view thanks for joining us. Have a lovely day thank you Helen.