the bonds will be fixed rate bonds, sub series a and d will be green bonds. we have done them before. those two sub series are bonds that we have had certified for green bond qualification. hopefully we can pick up more investors with green bonds. they are issued under charter 9.9 and 142.18. i would president spend a lot of time on this slide. this table shows the sources and uses of the bond proceeds by series. as you can see, most of the bond proceeds are series a. they represent all of the billions of dollars worth of funding we have done through 2006ible. this shows two documents you are being asked to approve. they are typical. most important the preliminary statement. that is the pos. it is disclosure document describing bond terms and condition of the water enterprise in the p.u.c. so couple years ago we did a disclosure presentation to this body and to inform you of the commission's disclosure responsibilities when ever it approves a transaction of this nature. you asked we provide when we do a debt transaction. the next two slides is q and i. the pu

regarding the 2020 bond, thank you for your thoughtful prework on that bond. we have seen that the bonds are much more thoughtful and well written when that type of work is done ahead of time. >> thank you. >> and it sounds like you're being thorough in trying to address that. you mentioned the deferred maintenance of 950 million. is that teasing the idea that you're going to put a bunch of deferred maintenance on that bond? it's hard to do that. >> the data actually just came in. in addition, it's just to understand for our maintenance and operations team how to prioritize their work. you know, in the past we're great at repairing the lot. we're not great at being proactive. it's actually understanding the life cycle of all our assets. so with this effort, with this asset management system, it will allow our operations team to prioritize the work. through that effort, it elongates the life cycle itself, and part of the work we'll be doing as the next bond also, and some of the future work i anticipate will happen. >> okay. because $950 million is a lot. >> so

parks bond. >> right. >> those have not been issued. >> i'm talking about the 2012 parks bond. it's that. >> right. a more detailed report would be key. >> got it. >> and with the content they get from here, i'll reach out and meet up and see if we can get to the bottom of it and get a report. >> and we'll talk about it in our next meeting. that will end up having some concerns, particularly as we go into the sea wall where we will have a lot more money. >> we certainly can do as part of our work planning for next fiscal year is to revisit the bonds we have audited and figure out which portions or projects are attributed to the port and we can use that as our way to narrow down the scope of our o g.o. bond projects. >> okay. >> great, thank you. >> okay, next item 1c is the schedule of upcoming bond issuances. you have a memo in your packet and our director of public fitness -- finance is here to answer any questions or comment. >> the sea wall, will that go to the board in april? >> it went to t

but what are bonds? a bond is an iou. write that down. an iou. it's a statement that the united states government - owes you moy for so much. what uncle sam was saying we will have people pay us taxes for this thing, but realso are going to have to go into debt to pay for this thing. n now, a show of hands, how many people have some sort of united states saveings bonds? okay. we got a few hands. how many people have been given something like that for a birthday or a graduation or something of that kind. right? it's a very, very important looking piece of paper that's not a toy. you open the card. it's not a toy. but it's a very official looking piece of paper with some very official historical looking people on it. and what your parents may have to ex39 you is that it is a u.s. savings bond, which means, you keep it, don't do anything with it for a while. but in a few years, you will be able to cash it and get money so that what you can pay for your education. you can pay for this, for that for important things. it's an investment in the future b

bonds? a bond is a i owe you, write that down and i owe you, it's a statement that the united states government owes you money. basically what uncle sam was doing was saying, we will have people pay as taxes to pay for this thing, but, we will also have to go into debt to pay for this thing. now, a show of hands, how many people have some sort of united states savings on to? bonds? >> company people have been given something like that for a birthday or graduation or something of that kind? right? it is a very, very interesting looking piece of paper that is not a toy. you open the 20 the car the, it's a very official looking piece of paper and what your parents may have to explain is that it is a u.s. savings bonds, which means, you keep it, you don't do anything with it for a while, but in a few years you will be able to cash it, and get money so you can pay for your education, this, that important things is an investment in the future, by having uncle sam go into debt to you. okay? that is

matthew: the same issue in the government bond market. you have to find the good bonds. think for next year, it's treasuries. i don't see looking at gilts or bunds, those bonds don't look particularly good to us. as we go into 2020, treasuries do. jonathan: i had somebody tell me that investment grade was the new haven asset. what do you say to that? kathy: there are limits. there is the idea that there no boundaries, there are no limits here. these are corporations, not sovereign governments. things happen in corporate life. the idea that that is a safe haven asset is mistaken. jonathan: kathy jones, matt hornbeck, mike schumacher sticking with me around the table here in new york. still ahead, the final spread. the week ahead featuring a speech from christine lagarde is coming up next. this is "bloomberg real yield." ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." it is time now for the final spread. coming up over the next week, on tuesday, u.s. housing starts. threw two wednesday, we get the fomc minutes, and another democratic debate. look out for th

turned into punishment bonds remember all those negative yielding bonds we've been talking about well there's been a bloodbath there hasn't been covered much in the news except for of course the financial press but after peak negative yield absurdity in august bond prices fell the bond a bloodbath and the mountain of bonds with negative deals has plunged by 5 trillion dollars or by 30 percent despite negative rates so in the euro zone where that u.c.b. in september cut us deposit rate deeper into the negative long term yells have risen across the board so member all those people buying 30 year bonds. switzerland was the 1st to go negative in europe well they're less negative now so in europe in switzerland it was negative 1 point one percent now it's soared by 70 basis points to negative point 4 percent which explains how much her that would be to get back to my comment at the top of the show the all time highs of the stock market that cash has to come from somewhere. so most of it comes from the money printing going on the central bank but the central bank can't print fast enough to

i want to show you what is happening in the bond and currency markets, because bond traders have beenppointed from commentary from the rba governor essentially saying qe is not on the table unless cash trade gives to a quarter of 1%. the aussie dollar pretty unchanged, caught in a range between optimism on the trade front and the likelihood we could see another rate cut from the rba next year. look at the divergence between onshore and offshore currencies today. 1%,ore rising by 1/10 of while the offshore is the worst-performing currency today if you'd -- today. we had a call yesterday from goldman sachs saying you should buy onshore currency. looking at this record day for stocks, but it waned, and we saw the nifty ending of negative on tuesday. a little bit of weakness in the future contract in the last three or four days, but kind of flat down a tad. the banking side of things, it could do well after recent problems. it could come to the support of what is going on with the nifty. in the last three trading days, the market up by two thirds of 1%, and we were approaching that. showi

matthew: the same issue in the government bond market. you have to find a good bonds.his year it's treasuries. those bonds don't look particularly good to us. as we go into 2020, treasuries do. jonathan: i had somebody tell me that investment grade was the new haven asset. what do you say to that? kathy: there are limits. the idea of no boundaries, limits -- these are corporations, not sovereign governments. things happen in corporate life. the idea that that is a safe haven asset is mistaken. jonathan: kathy jones, matt hornbeck, mike schumacher staying with me. the week ahead featuring a speech from christine lagarde is coming up next. this is bloomberg real yield. ♪ i'm jonathan ferro. this is bloomberg real yield. , onng up over the next week tuesday, u.s. housing starts. wednesday, fomc minutes, and another democratic debate. thursday, inflation and pmi data. event, perhaps the main christine lagarde making a policy speech. u.s. and eurozone preliminary pmi for the month of november. still with me are mike schumacher, matt hornbach, and kathy jones. let's talk abo

index bonds, u.s. inflation index bonds that were just starting to trade.trading around a 4% real yield, and now they are zero or negative. that is a continental shift downwards. i don't think that investors in general have shifted down their expected returns by 4% over that period of time. it feels like investors are living in the past with expected returns. your investors are obviously looking at global economic growth. i'm curious about your thoughts on the likes of louis vacant macros.con -- bacon and victor:victor: we don't trade m. we have viewed macros as two too difficult for us for a long time. that is a tough game. clearly there are people out there that have had a tough time doing it for decades. there is a long list of people that have twenty-year track records where they did great with it. it seems difficult for people to do, just judging by the exit. it is also possibly an age thing. i am in my said 60's, and i have other interests in my life as well. like we are kind of seeing a retreat of capital allocated to discretionary macro and a contin

in the very long end of the japanese bond curve and that is obviously having some impact on the bondve today. overall, the volumes have not been that lurch but the skew is going towards a lower jgb market. nejra: let's talk about the pound as well because we have certainly seen sterling gaining you-govoll, the mrp poll that shows the conservative party could get eight 68 seat -- seat majority. >> where people were obviously very defensive, unsure about the election result, they have increased the level of short-term volatility. we have seen one month volatility rise above three-month of volatility, which is quite unusual. only happens around big events usually and we have seen that. looks as traders are getting a bit more confident. confident that the election will be a clear result. they want to see one party clearly winning the election so they can start to make up their mind about where to go from there. they probably will not be willing to completely take all risk out of the picture. we might not see volatility come down to normalized levels but certainly there is a little more c

the bond prop the utility sector down 1.9%.u single stocks. , a strong demand for wind turbines. what is happening is the market is happy with the top line. against the middle of the p&l, margins are being squeezed. markets are looking past that. as a result, it is a plotting today's numbers. unicredit being applauded, up 5.68%, certainly showing better numbers. npl's being dealt with. it'll be interesting to see whether this can be sustained considering the exposure the italian banks have to the btp market. commerzbank, at a day where you're seeing markets moving sharply to the upside, only get away with .5% downside, considering what has been said today is commendable. toding at 5.74, having readjust its targets as it struggles to get through its restructuring program. commerzbank 5.74. that is look at the european close. vonnie: in the u.s., a grind higher in u.s. equities continues. the dow jones industrial average just off its highs. up .9%. the major movers are the industrials exposed to any kind of china headlines. we di

the proposed funds will be bo bonds.his will be a new affordable housing development located next to balboa park station. 67% of the units will be affordable for less than 50% of san francisco a.m.i. with a balance of the units affordable to less a.m.i. no residents will be displaced. it's currently a vacant lot. 39 units will be set aside for voluntary relocates. the project also includes an early childhood education center, ground floor retail, and a family wellness community resource center. financing should close by december 2020, a construction complete by october 2020. again, we'll return to the board for the bond issuance approvals next year. i have representatives from the project sponsor here to answer any questions you may have. >> thank you very much. there is no b.l.a. report on this. any members of the public like to comment on item number 4? seeing none, public comment is closed. >> clerk: subject to the terms of this resolution; and related matters, as defined herein. resolution declaring the intent of the

you could have bought bonds.n contrast, what we are looking at, you can see the graph increasing, more like a midcycle. like that midcycle. rates are going down because inflation is low and the economy is weak but we are seeing the curbs stephen because markets are looking forward to growth and there will make money. we are leverage long the two-year. all of these treasuries need to be financed on repo. nejra: do you rank into that when you say you have cuts from the fed in 2020? i have heard mixed views. the fed has cooled a bit but they are data dependent and market dependent. there might be room one or two more cuts because it is a low-inflation environment. the idea central banks have a premium over inflation, it is gone. the real rate of 3%, you don't see that anymore. ofwon't take much in terms low inflation. that is the focus to have another cut or two but the steepening is likely to come from the selloff in the 10 year. the last four or five weeks it is classic midcycle playbook. manus: we will go deeper

vonnie: still ahead, bond markets on the move.g to price in president trump's latest comments on trade. the take from the cme, next. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. ."is is "bloomberg markets let's go to chicago now. it's time for futures in focus. paul, the president was speaking a few minutes ago about china. he said they would like to have rollbacks. they haven't agreed to anything yet. equities briefly dipped, and then bounced back. why the kind of benign reaction to the president's comments on the fact he hasn't agreed to this trade deal that we've been getting excited about all week? paul: well, stop me if you've heard this one before, we had a trade deal eminent, and then something changes. this is probably the eighth or ninth time we've been down this road, and i think the markets are kind of getting tired at this point. they are pretty fully valued here. unless we hear a complete breakdown, i don't think you're going to see stocks go sniffing lay high

we are now seeing moves in the bond market. how much does this emphasize the fact that it is all about economic strength? a year ago, we had yields much higher than a year today. banks easingl rates to stimulate economic growth, and it worked. here we are, the economy is doing fine, thank you very much. retracedices have where they were two years ago. we are back to the highs from two years ago. economic activity is solid because rates came down. the 10 year inside 2% is totally different from within 3%. maybe in the bond yield gives back something, but i don't think it is credible central bankers will be tightening. i think the economy has plenty of room to run, so i think you have some room on the upside in equities. amanda: one of the questions is what that risk looks like. we appear to be in overbought territory. give me a sense of how you feel about the breadth of the market. that is where we are positive today versus two and half years ago. when we got to the levels two and a half years ago, it was being carried by half a

the global bond market shakeout. >> it feels that in the bond market yields could go higher. beyondainly you can go 2% likely by year-end. >> if it keeps pushing higher, then you'll start to get a capitulation which will bring us another leg higher in yields. >> you will continue to see pressure on yields. >> lower bond yields from here the market would not like. >> it reflects significant duration in macro. >> the market has come around to the view that maybe we are not going into recession but slower growth environment. >> they perhaps haven't overweighted duration. >> you want to be fine duration here because we have not yet seen a sustained pickup in momentum in u.s. data. jonathan: joining me are robert tipp, samantha azzarello, and krishna memani. any more oxygen left in this treasuries a lot we have seen this week? samantha: i think so. rates could continue to go up. rate volatility has been high this year and nothing will stop that. jonathan: you agree with that? krishna: it depends on your investment horizon. the market selloff has been significant. by year, close to

the city to pledge repayment of the bonds.third resolution requests approval of amended restated grant to provide $13.4 million to finance construction of the city owned and operated homeless services center to the mercy affiliate developing that project. of the financing structure to maximize non-city resources to support the homeless center. it covers a portion of the funds needed to build and leveraging tax credit for its portion of the shell costs. to review the timeline. today we are before you to request approvals. the construction contract will be final later this month. we requested h.h.s. transfer in december and we would close construction and bond financing and start construction in january 2020. once the board approves the project financing today it will be fully funded and should be able to proceed. now, i would like to invite michelle from the office of public finance to describe the cop funding resolution and ordinance for the homeless services center. thank you. >> good morning. office of public finance. as she

yes, a james bond mission. thing you don't want in a spy is someone excited to tell everyone they're a spy. ( laughter ) "my name's james bond, and i'm a spy! here's my license to kill. well, it's a learner's permit right now. don't look at the picture. i have a tuxedo on under my wet suit, and it's really binding in the crotch!" ( cheers and applause ) of course, a ton of people are out there running to replace donald trump. and i'll tell you the latest in tonight's "doin' it donkey style." >> okay, boomer! >> stephen: first up, former south bend mayor pet mayor pete has been surging into the lead in iowa, thanks in large part to support among older voters, all because of his new slogan: "vote for pete: he'll set up your internet." ( laughter ) ( applause ) but-- but-- >> jon: that's a good one! >> stephen: but there's one key demo mayor pete has bee struggling with, and that's african american voters. so he's been trying to reach out to them. on his campaign website, he introduced a racial equality initiative

what does that mean for european bonds, more specifically, spanish bonds?an up-and-down movement over the last year or so, but they actually trade , relatively low level of yields compared to german bunds. doesn't fact that spain have a government impact spanish assets? recent experience tells us that perhaps, no. but over the last three years, the lack of government in spain has happened at a time where spanish growth was actually very strong. your colleaguem from madrid, we are now starting to see a little bit of tapering -- growth in this tapering of growth in spain. that can have an impact on spanish assets. here.y have to be careful francine: is there anything that the ecb and christine lagarde can do? andrea: the warm blanket of the qe will not necessarily prevent volatility from taking place in the market, the it in ancient, or italy, or any other european bond market -- be in spain, italy, or any other bond market. comfort, but it does not mean that there are assets willreferral be immune to what happens imagery. because if you look at the volume of

market we have seen a rally in bond yields. yield on the.s.0-year treasury notariesen sharply the past seven days inven'ors ha seen that move in bonds since before the 2016 presidential election. now this recent spike in yields mass pushed bank scks back into ahi leade position with regional banks like coamerica and key cor hitting highs omile utilities slumped and the much loved building stos down anywhere from 2 to 8% for onthe. but more importantly it's finally given some credence to the bond bears, people who think bondrices are t high. th big question is the how sticky is in ral in bond yields that we have seen? well it's hard to say. but if a long-term u.s.-china trade deal reducing tariffs emerges. it could be sticky. the decline in bond prices could and provide fuel to give the rallyome additnal legs into the end of 2019. now keep in mind a few key factors havelo ledl bond yields staying lower longer. aging populations lower yields in exchange for safety. floebl central p banks. anicy uncertainty. the uncertainties arou

there's been a number of bonds that have come in front of the voters, that like the emergency bond, the emergency -- it's for fire people, police people, it's for hod podge of things. even the housing bonds that have come in front of the voters, it's really for a number of different initiative. it makes it very difficult to govern. so one of the challenges i think the governance committee has is trying to understand how do you, when the use of the bonds is not specified in the bond language, how do you determine your own budget and on track. the example i always give is the sf general rebuild, which was very clear what it was. it was clear when it was finished. you know, with the value to the voters were. that's something that i feel passionately about when i think of how do we govern this. as you know, the bond oversight committee has oversight over the city services auditor division, and in particular the whistleblower program, which i also think is a very important governance aspect of the work that we do. and we have two members that are dedicated to that program in particular. >> s

still sing the bond selloff continue.e a look at the yield inching towards zero, looking like it could exit that territory and watching the move and the offshore yuan, as well. the pboc leading the fixing rate past seven to the dollar for the first time since august. the rupee leading losses in asia fx and that is after moody's thegraded its call, raising outlook to negative siding growth concerns. have a look at my chart on the trade front because we heard the u.s. is a phase i china deal would include a tariff rollback. exposedws you china stocks in october, up 4% against the world index and that is after a slight gain in the month of october. compare that to negative trade headlines, such as in may when president trump announced the 10% tariff until did billing dollars worth of chinese goods would increase to 25% and net similar headlines coming through exposed stocksna significantly lower against the world index. it looks like a lot more positive investor momentum as we hear they could be closer to this deal. nejra? n

they have much more room to rally than german bonds or japanese bonds. this is why we favor and overweight in u.s. treasuries versus global bonds. but in terms of outright yield levels at this stage, we are probably in a range. guy: if we don't get a trade deal by the summer 15th, when the next tariffs -- by december 15, when the next tariffs are meant to go on, does the fed come back on the table? joachim: coming up on if we do not get a trade deal before the end of this year, uncertainties , and i think the fed is back in play. for now, they think they've done enough. they are setting back and watching and want to see the impact of the three rate cuts. as we go into the first half of next year, you will probably see andfed being back in play, i think it is more likely than not that we get further easing. that it turns out that the fed has not done enough and needs to do more. vonnie: what are the so-called swing factors that you speak of? the first onenk is obviously still trade. how does this trade deal come along? do we get a fade one -- do we get a