we are back with western asset management's carl eichstaedt, van eck associate, fran rodilloso, and ciohmann livian fridson advisors, martin fridson. gents, great to have you with us. carl, let's begin with you. is that a fundamental change for the market, should you get a reprice on treasuries because the president says he likes low rates? carl: everyone wants low rates. i think rates are determined by the fundamentals, not someone's opinion. it is the level of inflation, it is economic growth. you also have be respectful of the international effect where 2.25 u.s. 10 year may not be teresting to someone in the u.s., but in frankfurt or tokyo it is terribly interesting. jonathan: fran? fran: i agree with carl, except in a way i would like higher rates. i would like a normal rate environment. in the u.s. we are a lot closer to that than japan or europe, but, and i would like to see a set of conditions that encourages the fed to do most likely, two more hikes this year. jonathan: we have had this range for a long time through 2017 and we broke through the lower end of it yesterday. my qu

. >> i am going to point out that the growth of the fixed income dts, van eck, -- fixed income etf's, bailey is a complementary faction -- fashion -- mainly in a complementary fashion. obviously some of the efficient trading and cost efficiencies are attractive. jonathan: you will be sticking with us. coming up, the auction block, a big week for treasury issues but another rough week for the bond bears. you are watching bloomberg real yield. ♪ ♪ i am jonathan ferro. from new york, this is bloomberg really old. i want to held to the auction. the auction cycle in the united states as $24 billion auctioned and 20 year note and 12 billion in 30 year. looking at the 30 year bond sale , it had a yield of 2.9% with a bid ratio of three -- 2.3, the lowest since -- the president says he likes low rate. the market responds with lower yield. we are back with caramelized that -- great to have you with us. carl, let's begin with you. is that a fundamental change for the market, should you get a reprice on treasuries because the president says he likes low rate? carl: everyone wants low rates. they

fran: the growth of the fixed income etf's at van eck has largely been driven by institutional investorsho are using etf's and a consummate to refashion, so these are tools as i mentioned. they can be used to make adjustments in an overall portfolio duration and obviously some of the efficient trading and cost efficiencies. jonathan: you will be sticking with us. coming up, the auction block. a big week for treasury issuance and another rough week for bond bears. from new york city, you're watching "bloomberg real yield." ♪ ♪ jonathan: jonathan ferro from new york and this is bloomberg real yield. a light week for corporate issuance and we did see auction pick up on the sovereign side. the auction cycle here in the united states had $24 billion auctioned and $12 billion in 30 years. looking closer about 30 year bond sale with a yield at 2.23, the lowest since november. despite the supply, those governments all getting extra energy as the trump moves the bonds. the president says he likes low rates and the market responds with lower yields. we are back now with carl, fran, and martin. gre

we asked global brands investment president, tom lyden and john van eck., to you first, are there french etfs that you like now or more opportunity in european etfrs that would work better? >> hi, liz, great question. ewq, which are the i-shares france etf. up today 5.4%, as much as the s&p is up year-to-date which is amazing. but the funny thing is last week on friday, 57 million came out of this etf. so a lot of people didn't have confidence in the elections going forward. the big question are we going to continue to see things move? i think so for sure. rather than just playing just france, would i also look at europe as a whole and specifically the deutsche bank european hedge etf. getting all of europe, but most importantly you're hedging against the currency. liz: speaking after the curren jay. jan, the euro skyrocketed, five-month high. where do you invest in france? >> europe is two years behind the united states and they're just starting to raise interest rates, they're still negative in france. negative rates for two years and five years, the ban