colin robertson alongside andrea di censo and alan higgins.e markets this week, a check on the treasuries. good --ns, 30's, solid solid. front end up five basis points to 255. you end up with a flatter yield curve. still ahead, the final spread, the week ahead, featuring a central bank all-star panel. powell, draghi and kuroda. this is "real yield." ♪ ♪ jonathan: i'm jonathan ferro, this is bloomberg "real yield." it is time now for the final spread, over the next week, another round of data on u.s. housing and some central bank decisions from the bank of mexico and brazil. plus, the opec meeting to look ahead to. --ghi, corroded and powell kuroda and powell altogether. a lot of stuff you don't want to miss. still with me, colin robertson, andrea di censo, and alan higgins. i want to wrap things up with a conversation i've been having through the week. basically, whether you want leverage loans or exposure to high yields. the debate seems to be either/or. how are you thinking about that debate right now? andrea: really, it comes down to rate s

what does alan higgins say back to that? alan: everyone talks about it now.hink it was the atlanta fed president who said his job was to avoid an inversion year. we are getting flatter and flatter. but what i would say is part of it is the huge bill issuance you are seeing. maybe the u.s. can take a lesson of what we do in the u.k., our debt in the u.k. is long, probably too long, with an average duration of 12 years. i can't understand why they are hitting the front end so much. that doesn't help with the flattening curve. jonathan: we could talk about what they should and shouldn't do. it is what they will and won't do where i guess we will make money. do you just assume the forces will continue pushing the front end up? and keep the long end anchored? colin: i think so. i would play the flattener. it is not that i'm comfortable having to do so, but i would point out that we have had two rate hikes this year, in march in march, the ten-year treasury was at 292. today, we are at 292. if the fed decides to move twice more this year, i think it is inevitable t

alan higgins, colin robertson, andrea di censo.ut the treasury getting away, a significant amount of supply. there's no problem whatsoever so far as i can see. i think it is a problem of the countries. andrea: i agree -- colin: i agree that it hasn't been a problem at all. but i think part of why it hasn't been a problem is because interest rates in the u.s. and the fact that the demand is andl outstripping supply fixed income in general, certainly here in the u.s., it is a problem for others, and the strong dollar to me is, i think, the most important pressure. jonathan: do you think the stronger dollar, the issuance of the treasury, the balance sheet unwinding, is starting to cause cracks globally, outside of the u.s.? andrea: that's right. i think the magic 3% number on ten-year treasuries -- alan: we haven't had that kind of risk free income stream for a long time. but there's a lot of idiosyncratic factors. if it'slook at e.m., going to go badly wrong, it will in china. given that the chinese currency is so well behaved leaves

here to talk about this, alan --gins and a tennis coach alan higgins. the first set and the second set against del potro. what is going on lately? is it the fed? is it qt, the worry of higher rates? there has been quite a few scare stories across the world in the last week or two, primarily in emerging markets. what is going on? alan: there are any look at the u.s. equity market and very calm, week, although it looks like a risk off day in emerging markets is quite specific, a few scare stories and now people are focused on elections in mexico and brazil. i always look at the chinese yuan. if there is a real problem in emerging markets, it will come through china. the fact that currency is holding up well reassures me. what were tuesday, you thinking? stoic -- cally, stay we have some bank bonds and held on, so we have unicredit bonds being hit, but that is after a $13 billion rights issue. we added risk in february to equities, unloved u.s. equities. you asked me what is the greatest contrary in trade, i think it is u.s. equities. they are so unloved.

alan higgins with us, cio at coutts. >>> on a different note, apple has unveiled a raft of changes at its annual developers conference among the updates for the tim cook-led company are upgrades to iphones run faster, improvements to its voice assistance, siri, and a crackdown on tools that can track web users. apple also said it would work to make it easier to transfer iphone and ipad apps on to mac computers. here's a quick look at the apple effect and how it's playing out with stocks across europe. some of the chip makers into the money this morning austria microsystems bouncing the most, up 4.3%. d semiconductor also rallying having concerns across the sector about whether apple would take more production facilities in house and away from the suppliers. so it's been a rocky path trading these stocks of late we'll hear from apple's co-founder, steve wozniak, at 10:45 cet, for his thoughts on the iphone x. >>> wpp shares are trading lower after berenberg said the situhe british advertiser will "get worse before it gets better. the german lender cut wpp to a sell from hold, saying al