00:00What do you make of these moves at the long end of the curve. I don't want to make this too much of a big deal if it doesn't have to be. We have sustained levels around four to five percent for quite a number of years now. And the economy has been OK. What does 512 513 mean to you on a third year. I think it's the direction right not the level. And so there is just a pushback globally on the back end of the curves. So if you look at what's happening in Europe you're looking at Japan obviously the U.S. investors are
00:29basically having a timeout on the back end. And so consequently you're just seeing that you know the 30 year 20 year yesterday really trade heavy just because there's not that investor demand. I think investors concerns are manifesting itself in term premium and kind of wait and see mode in the back end of the curve. And that makes sense to me. Can you help us understand the things we should care about and the things we should ignore. Typically a 20 year maturity isn't something that investors like anyway. And it's auctions that we don't typically
00:59follow. All of a sudden yesterday 20 year auction soft demand and everybody cared about it. And I sat there and I just thought if you care about 20 year auctions you have no place in the bond market. What did you make of how much weight people put on that. Well so the 20 year definitely is an orphan type of you know maturity bucket.
01:17But what it says is about the duration. So forget about a 20 year 30 year. It is adding duration to the portfolio. So that's where the pushback is. And 20 years are trading poorly everywhere as well. So it is a anti duration trade. And what you're seeing in the back end curves globally is that they're behaving like risk assets. Not like the typical kind of defensive risk adverse assets. And that just kind of feeds upon itself.
01:45Terrific.
01:46Terrific.
01:47Terrific.
01:49And that also should be helpful.
01:50See you guys out there here.
01:51What is your philanthropist?
01:51Here I am.
01:52I am.
01:53It is.
01:54You.
01:55You heard this.
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01:57You feelehive.
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02:03You.
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02:10You.
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02:15You.
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