With Bloomberg you get the story behind the story, the story behind the global birth rate,

behind your EV batteries environmental impact, behind sand. Yeah, sand, you get context.

And context changes everything. Go to Bloomberg.com to get context. Welcome to the Bloomberg surveillance podcast. I'm Tom Keene.

Daily, we bring you insight from the best in economics finance investment and international relations find

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Bloomberg George Rusnack joins us right now.

George, it's real simple.

I looked at the UK two-year yield today

and I couldn't go logarithmic because it's a negative yield, but the math is real simple.

It is a persistent trend.

How grinding is this bond market, and does it indicate for you that the US tenure yield could grind ever lower?

It could grow and lower here.

We've been in a range here for quite a while, Tom, so since June 5th where he hit roughly 89 basis points.

We've been sort of this 60 to 75 basis point range

for the last month or so.

We think it's gonna probably stay in that range.

Unfortunately, though, over the longer term, we do think it might trend a little bit higher.

And a little bit higher is only 10-20 basis points, but quite frankly, Tom, a 10 basis point move

higher in 10-year rates is a negative 1.2% return for investors here.

So that's the challenge that investors are facing right now is that they're just really

with yield so low, they actually just a small backup can cause a pretty significant

negative yield and negative return for clients.

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