RUSH TRANSCRIPT Fed funds ░░░░░░░░ is now complete Let ░░░░░░░░ bring in Nancy Davis ░░░░░░░░ good morning Good to ░░░░░░░░ you Good to see ░░░░░░░░ We just played a ░░░░░░░░ bite from Jeff gundlach ░░░░░░░░ said the Belly of ░░░░░░░░ bond of the yield ░░░░░░░░ Agree or disagree That ░░░░░░░░ taking the safe route ░░░░░░░░ middle there s a ░░░░░░░░ of interesting things going ░░░░░░░░ on the curve we ░░░░░░░░ have the inverted yield ░░░░░░░░ Two 10 and forward ░░░░░░░░ is also inverted What ░░░░░░░░ means to your viewers ░░░░░░░░ you own long dated ░░░░░░░░ you take more risk ░░░░░░░░ get paid less yield ░░░░░░░░ it s a tricky ░░░░░░░░ for markets because a ░░░░░░░░ of the two year ░░░░░░░░ Jeff pointed out has ░░░░░░░░ been priced in it ░░░░░░░░ closer to where expectations ░░░░░░░░ and all the you ░░░░░░░░ not all but now ░░░░░░░░ only have 35 basis ░░░░░░░░ of cuts priced in ░░░░░░░░ 2025 which is wild ░░░░░░░░ when you think about ░░░░░░░░ we came into 2024 ░░░░░░░░ market was pricing in ░░░░░░░░ cuts this year so ░░░░░░░░ we ve had four ░░░░░░░░ Fed has under delivered ░░░░░░░░ in mid September in ░░░░░░░░ the market was pricing ░░░░░░░░ if you look at ░░░░░░░░ funds futures over 150 ░░░░░░░░ points and now we ░░░░░░░░ down to 35 just ░░░░░░░░ a little bit f ░░░░░░░░ boning A big shift ░░░░░░░░ expectations since the Fed ░░░░░░░░ cut not since they ░░░░░░░░ cut but in September ░░░░░░░░ moved higher 75 or ░░░░░░░░ basis points The idea ░░░░░░░░ the proposals in the ░░░░░░░░ Administration may be inflationary ░░░░░░░░ have seen the bond ░░░░░░░░ react to the inflationary ░░░░░░░░ with the hotter than ░░░░░░░░ inflation reports with ppi ░░░░░░░░ want to wait for ░░░░░░░░ yield to move higher ░░░░░░░░ you invest in bonds ░░░░░░░░ are bonds simply not ░░░░░░░░ There are a lot ░░░░░░░░ types of bonds I ░░░░░░░░ inflation bonds are a ░░░░░░░░ deal Real ields are ░░░░░░░░ I love to you ░░░░░░░░ educate people that the ░░░░░░░░ is the only way ░░░░░░░░ treasuries with inflation protection ░░░░░░░░ get reset It is ░░░░░░░░ CPI index That s ░░░░░░░░ the only way to ░░░░░░░░ inflation especially when a ░░░░░░░░ of the index is ░░░░░░░░ Nancy Davis thank you ░░░░░░░░ much Coming up our ░░░░░░░░ guest