jonathan: priya misra along with bob miller and mark okada from highland capital management.oming up, the auction block. they may be chewing on the world cup in russia, but the country posted the biggest bond miss since 2015. that conversation up next. this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro. jonathan: i'm jonathan ferro. this is "bloomberg real yield." i want to head to the auction block now, where more than $240 billion of treasuries were offered this week. i want to focus on the $30 billion sale of seven-year know it's can mother had the lowest yield in three months, when they beat the cover ratio of 2.3, weaker than the last seven-year note sale. meanwhile, in italy, the country had its first auction of five and 10 year debt since the new populist coalition took office. the sale posted a bid-cover ratio which was the lowest in almost a year. even with the yield on 5-year bond's, there are the highest in the eurozone. and russia, the country is on track for its biggest bond issuance in years. it sold half of the seven billion dollars it wanted to b

priya misra, bob miller, and joining us from dallas, texas, is mark okada.et to the story of treasuries so far this year. we have seen the call from goldman sachs, which is basically -- fold the big long, book your trade, book your profit. i have seen a call from a morgan stanley, which effectively issued a high on the u.s. 10 year. it takes me back to a question i will ask continuously, whether you think we have seen the high of the u.s. 10 year. priya: high for the next few months, probably. i am not sure if it is for a while. at 2.85, i think we are pricing in some of the risks. the u.s. economy is still pretty robust. when was the last time the fed chair said the economy was great? jonathan: it has been a while. priya: we have heard the economy is great, personal consumption expenditures price index is at target, and i think the -- personal consumption expenditures price index is at target. i think the fed will continue to hike. where i get nervous is when they go above neutral. 2% on the funds rate, financial conditions have not tightened that much. rat

priya, bob miller, and mark okada. priya, i want to begin with you.asically just -- book your trade, book your products. i'm cynical for -- book your profits. i'm cynical for morgan stanley. whether you think we have seen the high of the u.s. 10 year? >> high for the next few months probably. not high for a while. we are in a to 6310 type range. at 285i think the pricing is in some of the wrist. the u.s. economy is still pretty robust. the fed chair said the economy is great. we heard the economy is great, -- i think the fed is going to continue the hike. 2% on the fund rate is not interest. financial conditions have not tighten that much. i think rates can continue to rise. get about 3% i think money comes out of other risk assets. that is what ultimately caps it. have we seen that theme park to emerge -- that theme start to emerge? how things would rotate out of elsewhere and into the front end? have we seen the bulk of that play out? >> i didn't we are in the early innings of the marginal unit of capital coming into the front end of the yield curve

. >> do you have a sense, matt miller, that bob mueller feels hemmed in by tradition by the way things'm told by senior justice department officials that what the many bodies there are doing is investigating to prosecute crimes. but it seems like a known unknown at this point whether or not they have ruled as to whether or not they can or can't indict the president, whether or not -- >> yeah, that's right. you know, they don't talk about any of this. it's not just with bob mueller. on these big questions, these are questions that would come to rod rosenstein. he would have the power, if he wanted, to overrule the department of justice opinion that a sitting president cannot be indicted. but bob mueller has spent a good part of his career at the justice department, rosenstein the same way. i suspect that both with respect to the question of indictment and this question that lisa brought up about the 60-day unwritten rule that you don't do anything about the election, i think he will respect it. i think especially of what jim comey's experience of stepping in right after -- i think they'

. >> i want to know if bob mueller asked you about this text message. >> director miller did not aske about any text messages, congressman. >> just days after miller is appointed, two text messages, you reference impeachment. did bob mueller ask you why you were referencing impeachment? >> congressman as i've just stated he did not ask me about any text message. >> we also got more insight about the intimate text from august of 2016 when he and lisa page talked about stopping trump. he said today that was a reference to a lot of anger he felt after what he described as then candidate trumps belittling of a gold star family. >> my presumption based on that horrible, disgusting behavior that the american population would not elect somebody demonstrating that behavior to be president of the united states. we will stop it. you are speaking on behalf of the american people, correct? >> i don't recall writing that text. what i can tell you is that text in no way suggested that i or the fbi would take any action to influence the candidate. >> that is a fantastic answer to a question nobody

bob mueller has those tax returns. >> he should already have them. matt miller, correct me if i'm wrong, but in something -- a case as complicated as he's doing, how easy or hard would it be to subpoena tax returns of people that are subject of an investigation, particularly when you have so many financial transactions involved? >> it's very easy. you have to get the permission of the tax division within doj and go to a judge in private and ask permission to get them from the irs. by the way, donald trump would never even know if mueller had his tax returns because he would have gotten them not from trump, not from his accountant but from the irs. so it would be unusual, i think, if he doesn't have them. >> matt, sticking with you here a second, the rod rosenstein stunt that mark meadows, jim jordan in the house, it does seem that they backed off forcing a vote, probably because they knew they didn't have the votes. jeff sessions quickly decided to say, you know, how much he stands behind rosenstein. i know you still, former justice department guy, behind the sc

bob, please go ahead. >> i want to remind people that after miller responded, congress overturned it bypassing the right to financial privacy act. and in the right to financial privacy act said that if a government agency wanted to get your records, it had to give you notice and had to give you ten days to go into court and not show the records legitimate to a law enforcement investigation. an incredibly low standard congress then exempted a bunch of agencies from this minimal requirement and over the years exempted a whole bunch of activities. so there's hardly anything left to the law. and this was a democratic-controlled activist congress in 1978. does anyone have any hope that congress can actually effectively do any of this in the future? and i remind you that this reform has been sitting around for a long time and they have not been able to pass that. i just think that the prospect of anything in the next five to ten years is incredibly small. >> well, i'm not going to prognosticate about what congress may or may not do, but we'll talk about the right to privacy act, which critically relates to th

bob, please go ahead. >> i want to remind people that after miller was decided, the congress overturned it in part by passing the right to financial privacy act. the act said that if the federal government agency wanted to get your records, it had to give you notice and you had 10 days to go into court and show the records were not relevant to a legitimate law enforcement investigation. an incredibly low standard. congress exempted a bunch of agencies from this minimal requirement and over the years exempted a bunch of other activities. there is nothing left of the law. this was a democratically controlled activist congress in 1978. does anyone have any hope that congress can actually, effectively, do any of this in the future? i remind you that reform has been sitting around for a long time and they have not been able to pass that. i think the prospect of getting anything out of the congress anytime in the next five or 10 years is incredibly small. i'm not going to progress to take about what congress may or may not do but what i will say is there something about the notice requirement you talk about in the

bob, please go ahead. >> i want to remind people that after miller was decided, the congress overturned it in part by passingthe right to financial privacy act. and the financial privacy act said that if the federal government agency wanted to get your records, it had to give you notice, and you had 10 days to go into court and show the records were not relevant to a legitimate law enforcement investigation. an incredibly low standard. congress exempted a bunch of agencies from this minimal requirement, and over the years, exempted a bunch of other activities. there is nothing left of the law. this was a democratically controlled activist congress in 1978. does anyone have any hope that congress can actually, effectively, do any of this in the future? i remind you that reform has been sitting around for a long time, and they have not been able to pass that. i think the prospect of getting anything out of the congress any time in the next five or 10 years is incredibly small. >> i am not going to prognosticate about what congress may or may not do, but what i will say is there something about the notice requi

back, ge beating the street with the company's cfo jamie miller has to say about the results later on squawk alley, former ge vice chairman bobthe dow, now firmly positive, up 29 points. you might take something for your heart... or joints. but do you take something for your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. >>> welcome back to "squawk on the street," i'm sarah izen. one hour into trading, we started out soft and mixed on the market as far as sentiment, the dow is up 25 points, the s&p 500 is up less than .1%. the nasdaq is the winner and technology is the best performing group including microsoft. and scott, i know you're watching the banks >> they have all gone positive whether it's citi up half a percent, if you take a look at all those of stock prices, the xlf has been able to work itself well off it's 52-week low over the last week or so. and it's actually performing pretty well. so you've got a bunch of tech experts. >>> president trump complained about the strong dollar, and there

i'm sure matt miller will tell us later -- this was a genuine car guy. fromt like bobnd place. tom: he was -- francine: he was working 24 hours a day. it was the field chrysler deal -- fiat-chrysler deal, on the first of january a couple years ago. ionne classic.ch let's get to matt miller. he knows him better than anyone else on the tv side. he will be missed. he was unusual. he was a turnaround chief executive, one that loved what he did. reporter: he absolutely loved what he did. he was a person who worked seven days a week, 52 weeks a year. constantly either on the phone or talking with colleagues, talking with reporters, with customers, employees. he was always looking to make deals. he is most famous for the deal that saved chrysler. he was making a number of other deals. he was a passionate ferrari customer and driver. there he passionate about formula one. he wanted to win a championship. he had done a number of other thats for the family, helped make them a lot of money, enlarged their legacy as well. he will be missed by a lot of people but his business partn

bob mueller. back with the a-team jessica tarlov, kayleigh mcenany and judith miller.his is a big event. >> sandra: wow. >> bill: welcome back. >> thank you. >> bill: witch hunt, no witch hunt. democrats want blood. are they ever going to get it? >> they'll never get it. the president is right when they call it a witch hunt. the witch hunt began long before robert mueller began, when peter strzok the bias f.b.i. agent signed the opening document into the russia investigation based on no evidence, a phony dossier falsely liking the trump administration to russia. mueller was rebuked by a district court in virginia who said hey, you are not interested in going after people, you are interesting in finding people and finding facts pursuant to them to go after trump. when you're rebuked by a judge a good indicator you're overreaching. >> i disagree again. judy can go first. >> you have the indictment a guilty pleas of four people in the trump campaign. you have 12 russians indicted for meddling in the campaign. this is not a witch hunt. this is an absolutely essential inves

bob was just talking about. technology and where stocks headed genly from here michael far is president of fahr miller and washingtonvin o'leary co-host of "shark tank." they are both cnbc contributeors, we're happy to say. michael, let's start with netflix. i note in my notes that you say because of its very nature it is "not suitable, not suitable, for a long-term buy and hold discipline you view it as a speculative stock that would not be in your buy and hold portfolios. why? >> correct well, you've got over 100 pe ratio, and they've got content, and they've got a lot of good things, but they're still in a negative cash flow position, and so i can't -- i can't call -- you know, you saw that stock this morning down over 50 points i can't call fred and ethel, who have been clients of mine for years and say, we've got this netflix thing in your portfolio, and it's down 50 points today. it doesn't work when there are really good earnings and reasonable price to earnings ratios you just can't go to the thin branchs for returns and not understand that there's going to be a significant down side at some point maybe netf

eventually pushed the president to walk back stephen miller and other aides were involved in drafting a statement. >> so how extraordinary is it in your experience, bobhite house chief of staff making phone calls around capitol hill saying step out to a bank of microphones and criticize what the president did yesterday abroad? >> that has been contested by some white house aides that john kelly, the chief of staff, actually asked people to contest the president. the way it was characterized to me by people very much familiar with the calls by the chief of staff is he believes republicans had to speak out yesterday so the president was aware of how badly the party had broken from him. sometimes the president can be seen as someone in a bubble and kelly wanted to make sure that the president was hearing the feedback loud and clear, especially from the critics. >> so robert, no one is more hooked up with the white house than you are. according to your reporting and your instincts, how long do people fear in the white house, how long do they fear it will take for this president to become angry and resentful at those who have just criticized him? >> very