jonathan: joining me around the table is greg peters, bonnie wongtrakool, and in st.ouis we , we have brian rehling. brian, i want to begin with you and talk about this issue around the balance sheet. is it going to be as boring as the federal reserve suggests and hopes? brian: absolutely. the whole point for the fed is to not use the balance sheet reduction as a policy tool, in my opinion. they used it once they wanted to drive rates lower and the point is to get out of this with no disruption. jonathan: this will not be a policy tool for those hoping they would move on balance sheet and pause on rates. will they be disappointed? gregory: i think so. i am not sure it will be as boring as the fed thinks. just because they say it will be boring, does not mean it will be boring. it introduces each fed meeting into play. they are talking about slow and steady but at the end of the day, they have to readjust, and what happens when the economy slows down and the signaling is, we need to actually reduce the number, not increase the number? i am not as convinced. bonnie: i t

gregory peters, bonnie wongtrakool, and brian rehling.ing up on this program, it is the auction block. a big week for high yields. the market sucked it all up. this is bloomberg "real yield." ♪ ♪ jonathan: i am jonathan ferro, . yield." loomberg "real i want to head to the auction block now. the u.s. treasury with three main offering so far this week. i want to focus on the $34 billion 5-year note sale. 23% of the total, the least in about a year. looking at moody's, the pipeline for those bond sales dropped. it marks the lowest level in more than two months. it continues a borrowing slow down in the moody market. where there has been no slowdown was in the u.s. high-yield, the biggest week for issuance since march. $9 billion, bringing the year today total to more than $120 billion. i want to bring back in the roundtable. here with me in new york is greg peters and bonnie wongtrakool from western asset management, plus in st. louis is brian rehling. guys, for the first time in about a year, i heard somebody saying, there is no alternativ

gregory peters, bonnie wongtrakool, and brian ringling. -- brian rehling.n we keep asking again, unemployment keeps grinding lower. where is the wage growth? brian: very slow to come about and probably will continue to be so. that has been a problem for the fed. i think it goes into those inflation expectation numbers that are trending slightly lower. but that said, the jobs report has to be a total disaster for the fed not to move in june. june is pretty much set. jonathan: greg? gregory: same answer. i think the inflation numbers matter a lot more than payroll. we were joking, pce is the new payrolls. i think payrolls are slow and steady and there is no wage growth, and real wage growth is still negative. jonathan: i want to wrap up with a look into next week and wrap up the conversation with a rapid fire around. -- rapid fire round. one word answers only. the u.k. election on deck. long jeremy corbyn or longer theresa may? gregory: long may. bonnie: may. brian: may. jonathan: have we seen the high for 10 year treasuries? gregory: yes. bonnie: yes. brian:

still with us are gregory peters, bonnie wongtrakool, and brian rehling. yield."oomberg "real ♪ ♪ jonathan: i am jonathan ferro, this is bloomberg "real yield." the u.s. treasury with three main offering so far this week. i want to focus on the $34 billion 5-year note sale. 23% of the total, the least and about a year. look at the movies, the pipeline for those bond sales dropped. --continue is a borrow continues a borrowing slow down in the money market. where there has been no slowdown was in the u.s. high-yield, the biggest week for issuance since march. thanear to date total more $120 billion. here with me in new york is greg peters and bonnie wongtrakool from western asset management, press in st. louis is brian rehling. for the first time in about a saying,eard somebody there is no alternative. it has been 12 months since i heard that kind of language, there is no alternative and that is why i am buying this stuff. does that concern you? brian: there is a lot of complaints in the market, no doubt. volatility is very low so there is not a lot of focus on risk