matterhorn back -- jonathan: matt hornback? matt: i agree with that. if you think about how the fed is characterizing their vision in the economy, they link it to things like productivity and the demand for safe haven assets. we know one thing for sure is the demand for safe haven assets should be higher at these elevated levels of premium than -- risk premium than other times. michael: i can paint a picture where the tax reform for tax cuts are somewhat disinflationary. companies have this new found a bottom line, these newfound earnings and market expansion, and there is a decent chance they get some of that back to their customers in the way of lower prices to maintain market share. there is tremendous price competition across a wide range of industries where companies are fighting for market share. jonathan: kathy jones for charles schwab. coming up on the program, the auction block, the appetite for high-yield looks strong as sprint makes a call to the bond market for the first time in three years. that conversation, next on bloomberg: real yield.

. >> full house in new york city today, joining me is matt hornback, kathy jones and mike. , it went well. $258 billion. matt: we knew about the supply from a year ago. here it is, the treasury market did a really nice job handling the supply. when you're talking about supplying impact on the market, in the grand scheme of things, the flow impact is very small. there is a cottage industry of hedge funds that try to monetize these will impact and their so microscopic that it takes a lot of people to try to pick up just a few ticks in the market. >> numbers have been significant. some of these issues have been unprecedented in size. we are not talking about the bond apocalypse. there is a of fear about the deficit by some fringes of the market, do you think it is overdone? kathy: i think supply will be an issue. it is not going to end. we are going to have to absorb a lot of supply but otherwise we haven't had that challenge over the last couple of years. i think it will continue to push rates up. we will see them to continue to grind higher. >> i think when treasuries hit to