fiscal strong.d egypt of all places with $4 billion in international investors and receiving 12 million dollars. still with me, jeff rosenberg, kathleen and nick from jpmorganwant to get your thoughts because a lot of people are looking up the flows and money is draining out over the last week. kathleen: we had big headlines. jonathan: have easing cracks in the fundamentals? what is: that is interesting. the fundamentals are solid. it is the technicals we have to be concerned about. the technicals drove us to the yields on the spreads that we are seeing. we have seen some slows. i think you are seeing a big move and investors taking a duration off the table. not sure that is the best idea. the front end of the curve looks like the more exciting place to keep an eye on. that is not something we have done for 30 years or so. i think that is where all the action is taking place. jeffrey: we had a wake-up call on volatility and illiquidity, you saw a first hit in the market and the liquid parks. i think they are liquid. parts.id i think they are liquid. it spread over to the cash market. it has nothing to do with fundamentals. it is not like anything changed ov

of england. governor mark carney will be addressing the parliaments treasury committee. still with me, jeff from blackrock, kathleen, and nick gartside from jpmorgan a mill about the amount of issuance coming from the treasury, specifically t-bills into next week. kathleen, is there going to be the insatiable demand for treasury needs as they ramp up issuance in the coming months? kathleen: i doubt that very much. and i think that is why looking at the short end is going to be important. you have got supply from the treasury. you have also got companies that are now incented to start investing and using their cash. they are already in dollar investments, but they are in short duration investments. so when those holdings start getting sold, those yields will be a lot higher. so i think it means the short end is going to be where the attention should be. jonathan: just quickly, jeff rosenberg, your thoughts? jeffrey: i agree with kathleen, the short corporate trade and theme is a big one. that is the impact in terms of repatriation. in terms of the issuance and your broader question, we are going to have this theme for a while. there is lot of issua

nick: we like the dollar denominated assets in places like high yields, but critically we want that currency hedged. jonathan: net of jpmorgankathleen, and jeff from blackrock sticking with me. , coming up on the program on bloomberg "real yield," the auction block. csx holding a auction to break up the u.s. market. that is coming up next. this is bloomberg "real yield." ♪ ♪ jonathan: i'm a jonathan ferro, this is bloomberg "real yield." i want to head to the auction block where inflation fears showed up with high-grade u.s. issuers of all places. wednesday, there was a session with zero issuance in a session. csx did hold a $2 billion later offering in the week, which features three chances at 10, 30 and 15 years. in the u.s. market $7 billion of , 30 year temps were sold. it covers 2.31, which is less demand than at a previous sale, and a sign that investor appetite for risky sovereign paper. egypt of all places raising from international investors, receiving about $12 billion in orders. still with me, jeff rothenberg from blackrock, kathleen, and nick from j.p. morgan. kathleen, i want to get your thoughts on credit. a lo

of the year. u.k. rates look way too low, given the economic backdrop. mark: thank you for joining us, nick gartside at jpmorganagement. vonnie: let's get the first word news with courtney donohoe. senateapitol hill, negotiators are coming up with a long-term budget deal that would prevent a government shutdown tomorrow night. the leader of the group of conservatives, mark meadows, says it will be a bipartisan deal but it is likely to pass because increases and defense and other spending will appeal to many lawmakers. vice president mike pence is in japan where he is threatening north korea with the toughest economic sanctions yet. he spoke after meeting with the japan prime ministers shinzo abe. has made his sister to represent north korea at the winter olympics in south korea and she will be the first kim dynasty official representative to set foot in the south. in germany, the way is clear for , hera merkel's fourth term bloc has reached a deal with official democrats to form a coalition government and people familiar with the matter say social democrats will run the finance foreign and labor ministries. her