 from fixed securities for a little more on this. Mark, good morning to you and thank you for joining us. Now these comments about the balance sheet, I mean looking to, I guess, unwind some of the balance sheet and looking at what the market is now pricing in, maybe a slower pace of rate increases as a result. What do you make of, I guess, some of those comments that we've heard? Yeah, good morning Leigh Ann. I mean, I guess the key part there is actually he on Friday started to try to correct the market's interpretation of what he said previously in the week where, as you rightly point out, in terms of if the Fed is trying to reduce its balance sheet, that's kind of is almost a pseudo rate hike. And therefore, Dudley's comments initially were interpreted that maybe the hike of the actual cash rate, the Fed funds rate would actually be slower than expected. Now he corrected those on Friday, which is why you saw fairly significant moves in the US Treasury yield intraday on Friday in the 10-year. So we went into the session in New York, obviously on the back of the US strikes in Syria, and then we had the very weaker, much weaker than expected non-farm payrolls, a headline figure, and that set the Treasurer is up to rally. And the 10-year yields dropped down to, as low as intraday, 2.27%. But as you rightly say, after Dudley's comments, you did see a backup in terms of prices, yields did move higher, and I think they closed at around about 2.38 in the 10-year. So that was a key driver for the session. Not anything else, but Dudley's comments that in terms of some of the misinterpretation that we'd seen prior, he was trying to correct those. And as you rightly point out, that kind of fed its way in terms of market expectations that hikes would probably continue at the pace expected to maybe two or even three more hikes this year, whereas before, I think, the market was certainly interpreting Dudley's comments that maybe we would get less than had previously been expected. Now, if we were to see, I guess, the 10-year yield moving back towards 2.5%, do you think this would underpin the US dollar, especially if the Fed does continue to signal at least two more rate hikes before any sort of short pause there on their balance sheet? What do you think we could see in the US dollar? Yeah, look, I think that's certainly going to be the case. You see, if the Fed highlights that it's going to continue on its path, that's expected to a three hikes this year. And also as well, let's not forget geopolitical risks have risen. You've seen Moscow and Tehran's response to the US airstrikes on Syria as well saying, look, that is also a red line that's been crossed. So the US-Russia tensions seem to be rising again, and US treasuries and US dollar seem to be one of the favorite safe haven plays, and you see continue to see strength in those going forward as well. So I think you'll probably see a bit of strength. Also on the flip side as well, let's not forget there's been a fairly significant move in iron ore on Friday, as you've previously mentioned on the show, 7% falls down 20% since peak. So that's impacting the Aussie dollar as well. And you may see some further weakness below that 75 cents a dollar mark in the next few weeks if that iron ore price continues to show some weakness. Yeah, that's interesting that you say that, obviously, playing a big part there. And if those US yields do start to move higher again, we have the RBA's financial stability review this week. If that reiterates the RBA's concerns related to higher property prices, particularly in Sydney and Melbourne, do you think there could be a good excuse to kind of push that Aussie dollar even below 74 for US cents? Yeah, I think so. I think that's the key probably data point obviously aside from the jobs data as well on the same day. But I think everybody we're looking at that stability review from the RBA in terms of the details and the comments surrounding the macro-predential regulations that have been put in place to try to kind of take the heat out of some of the property markets in Sydney and Melbourne, as you rightly point out. I also wonder whether we're going to get to the stage as well that whilst macro-predential is actually a sharper tool than broader interest rate policy, we might actually see some macro-predential policy down at the postcode level very similar to what we've seen in Canada and also in New Zealand where they are targeting the eastern seaboard markets, whereas Perth is just recovering and probably Brisbane is also kind of further along that recovery path. So you don't want to see those markets especially Perth being kind of tarnished with the same kind of taking the heat out of the property market as you're seeing in Sydney and Melbourne. So I think you might even see some kind of more targeted macro-predential rules coming in down the line if the heat doesn't get taken out of the market. And we saw very strong auction clearance rates in Sydney and Melbourne over the weekend as well which kind of adds that to the pressure on the RBA. And I think as you rightly say going back to the Australian dollar if the RBA can't hike because it's kind of waiting to see what is potentially happening with the macro-predential then maybe you do see some weakness again flowing through into the Australian dollar. Just while we are talking the Aussie dollar and what's in store for the week ahead and you briefly mentioned it there, the local jobs report, that is what we're all going to be watching this week with a lot of interest but the RBA in particular, what do you think we can expect? How important is that jobs number this week? Yeah it will be pretty important given the the the weakness that we saw last month in March. Again you know everybody will be closely watching that split between full time and part time. There's been a very weak trend there and also I think it's going to be of more interest because the RBA actually did note in its previous statement from last week that you know the jobs market data was probably been a bit softer than they'd expected as well so if that continues again you know again it does try to put the RBA between a rock and a hard place in terms of trying to take the heat out of the property market but you know supporting the more broader economy and if we're not seeing that jobs growth come through you know certainly not seeing that wage inflation coming through as well you know it does put the RBA in terms of a really difficult position so it's one that they will certainly be watching as will the rest of the market and if you do get a very soft figure again that will probably put a bit more pressure on to on to the Australian dollar tending to see it probably weaker against the US. All right well that one will be closely watched after I think the Aussie dollar one of the US performing currencies last week as you say I'm in the iron ore price adding to those moves there but look lots of watch Mark Bailey as always it's been wonderful getting your insight thank you so much Leigh Ann have a great day we will take a break