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 Bloomberg surveillance on Apple Podcasts soundcloud bloomer.com and of course on the

Bloomberg we begin the program by talking about this market And of

course,

this course on the Bloomberg. We begin the program though by talking about this market.

We can bring in Rob Waldner of Invesco.

Rob, you've made it pretty clear. You think it's time to move to a more cautious

risk stance on risky assets. I'll start with a short one. Why? Well, John,

thanks for having you this morning. What's driving markets here is really policy, right?

And I'll give you a few statistics.

We have, you know, we talked about Treasury's just a moment ago.

You know, real yields in the Treasury market are very low so if you look at real

yields have continued to decline we have five year real yields about minus a

hundred basis points real ten year yields minus eighty basis points we We have a Fed that continues to be active in the market which is the reason why we've gotten this big bounce off of the bottom.

And if you look at what happened in June, it becomes very, very clear what that is what's driving things.

So in June, we saw investment grade, which we know that the Fed is buying, continue to rally,

investment grade spreads tightened by about 24 basis points or so in June.

High-yield did not rally as much.

Spreads tighten much less.

...