mike from goldman sachs and diana from jpmorgan.oming up next, the auction block, alibaba host the biggest holds the biggest chinese corporate offering in this is 2017. "bloomberg real yield." ♪ ♪ jonathan: this is "bloomberg real yield." i want to head to the auction block where we start in the united states with the treasury. a $28 billion salary. a yield of 2.3%. the bid to cover ratio since february 2016. indirect bidders buying the lowest share in 16 months. in the u.k. smart money went , long. the university of oxford sold $1 in bonds due in 2017 with a billion dollars yield a 2.5 percent. it may be the first 100 year obligation to be sold. the big highlight this week. alibaba, it held the biggest chinese offering of 2017, attracting $46 billion in orders, more than six times the deal size. the longest portions of the offering, 40 year bonds offering 1.58% over comparable government debt. still with me around the table, from new york is mike from goldman sachs. and diana from jpmorgan. what an offering. $46 billion of demand j

and diana from jpmorgan. billion dollars of demand.he wall of demand leading a flood of sub -- flood of supply. markets are open. there is a ton of liquidity. the craziest manifestation of .hat is, the bitcoin but there is a spectacular amount of money in places where the rates are incredibly low, whether it is japan coming out of china, coming out of korea, the rates are very low, there is not a lot of product. dollar markets are open, a wide range of products here. give hillary are in the cycle, we will have some kind of an .vent jonathan: was at the fact that it was a single issuer with a better yield? michael: i think it is the latter. the fact that the chinese company is attractive to too many people, there is an enormous amount of capital in asia that is really earning nothing right now. we have concerns. particularly around china. even though you have a very high quality company that is issuing, maybe china continues to grow modestly over the course of one to three years. their one year debt or three year debt might be fine. the