 markets are trading Simon Michele joining us from big security Simon great to see you there obviously bond markets very much reacting to that better than expected employment data out of the US and what that will mean for interest rates of course but an interesting dynamic that we're seeing at the moment I mean equities moving up bonds moving up at the same time it's not really what we expect to see is it absolutely right good afternoon Leanne it's usually either or generally when investors are looking to take on some risks you see very good solid performance out of equity markets and they're feeling a little bit under a bit of volatility they're looking for bit of safety we see bond markets performing well but what we have at the moment as you say is the US 10-year Treasury hitting an all-time record low and at the same time the equity market about to hit an all-time record too so we don't really see this I don't think we've ever seen this before so it's certainly causing some concern out there for investors I think it definitely suggests that there is an ongoing view that rates will move lower we saw that rates did start to move up a little bit on the back of that better jobs report out of the US but once there was a little bit more value there we saw investors pile in and push those yields further down so you know I think while we're in an environment of lower inflation lower growth in the Australian market our 10-year rate 10 basis points above the cash rate you know and that continued demand for bonds is likely to keep these yields down low just on the US Fed and you mentioned there sort of a shift in the pricing of a rate increase and so forth what's what's your view do you think we could get a rate hike this year particularly after that solid jobs report okay I don't know that they can Leon and I really think it's global factors here I mean bear in mind is of course we also expect to see the Bank of England later this week lower rates in the UK down to you know maybe just slightly above zero so you know we've got Japan now new government looking to some further quantitative easing measures Europe's own still in easing concerns out of China the RBA here you know we expect to send see them cut rates possibly in August after the July CPI print later this month so you know they're really you know the direction is down and I think it makes it very tough for the US to go it alone and move rates up in this environment if you have a look at what the market saying they see rates lower for longer certainly not building in an increase this year yeah Simon I'm obviously seeing this flight to safety but despite that I mean we see a credit margin tightening well this is the thing so normally again you know this is this divergence of of muddy here but what you're seeing is investors have to take on the more risky issuers take on a better yield for moving down the credit spectrum so right across credit markets we're seeing good strong demand so that's that's positive and it certainly suggests that this is really a search for yield rather than a significant flight to safety all right fantastic Simon we're gonna leave it there really appreciate your time thank you have a good day