 We're starting to fix securities now and we saw a big sell-off in bonds overnight on the back of rising oil prices New great debt proposal leaving markets a little more update beat for more. We're joined by Jonathan Sheridan from big securities In Sydney John, what did you make of the bond market moves overnight that big sell-off? Good morning in grid. Yes, really interesting that Where we are now is pretty much where we started yesterday before all the all the turmoil that was created by the cut from the RBA So pretty much as we were a big risk on Tone to markets with the oil price in particular and the room is still surrounding the Greek negotiations as you say Locally, I mean in terms of the bond market here What are we waiting for is is it the statement of monetary policy from the RBA on Friday? Where we'll get a little bit more detail on sort of Ford guidance because we didn't get much of that in the statement Is that what we're watching going forward? Look, I think just the tone is is still again is risk-on and there'll be particular support from You know central banks around the world and now the RBA seems to have got on the bandwagon I think the actual sort of appreciation of bond prices will be a side effect I think really the key message that central bankers around the world are trying to put out there with their monetary policy Is that it's really about currencies? I mean, that's really what Glenn Stevens was focused on he talked a lot about a lower Rosy dollar is needed to rebalance the economy And it's really about sort of a race to the bottom now I think it's you know Glenn Stevens has tried to fire his first shot in in the currency wars that are that are happening around the world Do you see is a you know being inevitable that we stop after two? And that environment it seems as you say if it is a race to the bottom that implies there's kind of no limit on Going and still further Yeah, I think I think anything's possible. I think we're in unprecedented territory I mean if you look at the Swiss bond curve, for example, you've got negative rates out to about 12 years You know Macquarie Bank issued a bond in Swiss France yesterday that pays them 12 basis points a year for eight and a half years You know, I just think that's kind of ludicrous really if you just think about it logically so I Don't think we know where we might stop you know Before we did QE for the first time no one thought that that could happen either, you know, so I Think it's all about the currencies to be honest Hey, just moving on to local sort of corporate bonds because that ANZ hybrid which has been in in quite a lot of focus of late Has priced it you think it's a bit expensive though Yeah, I do. I mean, I think As an outright yield, it's around six point four percent to the end investor But that includes frankings so you won't you won't receive 30% of that until you do your tax return If you just compare where the banks here are pricing those hybrids with Europe I mean, that's at the really really tight end of the range for the you know, super strong banks over in Europe And I just think that they should be really with at least a four percent margin on the front of those bonds They were on the front of those hybrids. I wouldn't call them bonds. They're much more equity-like Who's that who's next in that in that sense who's next to come to to issue? Yeah, well nab are rumoured to be coming in a couple of weeks But they're their proposed deal I think will be five years as opposed to the eight-year non-cool period we've seen from this ANZ bond and The pricing on the nav is supposed to be around that 360 level as well So, you know three years less exposure for the same price If that actually eventuates then I'd much rather own the nab one than the ANZ one Interesting, so it's not first mover advantage in that sense. Well and look at CBA, you know They did Pearl 7 at 280 before Christmas All right, John, we'll leave it there. Thanks a lot for joining us. Thank you slow and steady wins the hybrid race