 trading. Jessica Russett from FIG Securities joins us. Now Jessica, let's take us through these US Treasury yields. Was there soft demand? Hi Helen, thanks for having me. That's right, so last night we did see there was a 23 billion US dollar 10-year auction and that was met with a lot more softer demand than previously it has. It came in at a yield of 2.40%. Back in April that was down at 2.17%. So we have had the yields. There were relatively odd change but they have been met with much much weaker demand that's for sure. Yeah so now what is it because the Boston Fed Rosengren they are sort of warning the Fed may have to lift rates more quickly. What's your take on this? Yeah that's right Helen. He did overnight come out and say that the US economy could overheat if the central bank doesn't raise rates sooner. He also said that he wants discussions to start about trimming the balance sheet after the first or the next hike which that will put it at June and the Fed had indicated that that conversation wasn't going to start until the fourth quarter of this year. So he certainly is talking more to the terms that you know there's growth over there and I think this has come close to the jobs data that we saw on Friday night that came in with an unemployment lower at 4.4%. So I do seem to think there are signs there that may indicate that there will be more sooner rate hikes and more of them this year and that's what seems to be the feds talking to. All right now the Australian government bond yields are slightly high but I wanted to ask you about if you're expecting anything out of potentially the budget reply speech tonight. That will actually be interesting to see what comes of it but there hasn't been really too much play on the budget in bond yields at the moment and so I don't think anything out of that will indicate too much unless there is you know more talk on infrastructure spending or all the likes of that that could talk to growth and inflation in the economy but I don't think there will be too much of an impact on that on bond yields. Now why were yields highest they've been all month on Wednesday? Yeah that's right there was a higher on Wednesday we had the five year over 2.2% and the 10 year was higher than the 2.7 and since then though they have come off retail sales we could then expected so they did come lower after then and which they are at the moment we've got the five year at 2.15% and the 10 years currently at 2.65%. Yeah so sorry why were they higher on Wednesday was that because the budget had been received fairly well? That's right and also there was a $75 billion infrastructure spending there as well that talks to you know higher bond yields as well future growth and so that lifted the yields there that's correct Helen. Yeah so really briefly the federal budget was quite good in terms of bonds? Yeah that's right we did see for infrastructure and growth and inflation there were positives that came out of that I mean a $75 billion spend that's quite significant. There was also that bank levy that has been you know big fork at the moment and in that there's a levy for the major four and also Macquarie but the smaller regional banks they won't be subject to those new charges and on the back of that we have seen the senior debt for the major banks aren't changed but though is demand for those regional banks and those yields have come in tighter. All right Jessica Russett from FIG Securities thanks so much for joining us. Thanks for having me Helen. That's all we have to