bloomberg's lisa abramowicz sticking with me alongside henry peabody and matt brill from invesco.onds, twos, tens, and 30's over the last five trading days. remarkable stability coming through the curve. two-year yields down seven, 10 year yields down 13 basis points, and the 30 year trading where the 10 year was about a week ago. a real reversal of this market. the story returns. still ahead, the final spread, the week ahead, featuring the u.s. jobs report. this is bloomberg real yield. ♪ jonathan: from new york city, for our viewers worldwide, with ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." it is time for the final spread. coming up, a reminder that u.s. and u.k. markets will be closed on monday. we will have a series of u.s. economic reports including the payrolls report and a reading on gdp. plus, the fed's base book and the g7 meeting for central bankers. for final thoughts, still with me is henry peabody, lisa abramowicz, and matt brill. matt, as we look ahead to payrolls, i want to highlight a story in the treasury market. it is this remarkable stabili

is henry peabody, and bloomberg's lisa abramowicz, and coming to us from atlanta matt brill from invescoit is great to catch up with you. henry, i want to begin with you. why is so much of this happening in europe at the front end? we have seen volume explode, intraday moves of some 20 basis points on btp's on two years. why all of that? henry: there is a bit of a curve flattening going on. you see that risk coming out of the front end of the market with liquidity. let's take a step back. what has happened in europe? you have seen fairly solid improvement over the last handful of years -- debt sustainability, lower interest costs, but they have not grown to the degree the rest of the continent has. there is a reason for unrest there. the big question is, how do you actually decouple italy from europe, and you don't. that is the issue. will it get worse before it gets better? probably. you need to start thinking about, when is there an entry point? jonathan: to make that judgment call, you also have to think about, what are we pricing in? this is a government forming that wants to spend m

is henry peabody, and bloomberg's lisa abramowicz, and coming to us from atlanta matt brill from invescoit is great to catch up with you. henry, i want to begin with you. why is so much of this happening in europe at the front end? we have seen volume explode, intraday moves of some 20 basis points on btp's on two years. why all of that? henry: there is a bit of a curve flattening going on. you see that risk coming out of the front end of the market with liquidity. let's take a step back. what has happened in europe? you have seen fairly solid improvement over the last handful of years -- debt sustainability, lower interest costs, but they have not grown to the degree the rest of the continent has. there is a reason for unrest there. the big question is, how do you actually decouple italy from europe, and you don't. that is the issue. will it get worse before it gets better? probably. you need to start thinking about, when is there an entry point? jonathan: to make that judgment call, you also have to think about, what are we pricing in? this is a government forming that wants to spend m

of invesco andt tracie mcmillion of invesco. -- are sticking with us -- we take a look at investmentst. this is bloomberg. ♪ ♪ fortocks in a bull market the last nine years and approaching the longest ever bowl market on record. with the return of volatility, new risks have emerged. we sat down at a conference in los angeles for their take on the stock market. >> we are down the road in the cycle and there are certainly places where people are further along the greed it there -- sector. there is no question people have been reaching for yield. in terms of sustainability, it has run out and has been remarkable it lasted this long. in market ran out of steam february. >> it is a time to be cognitive of the fat that we have had -- fact that we have had a cycle that has run and the economy is changing. >> growth feels correlated at the moment. there are certainly things that could be disrupted. i think people need to be nimble , but you have to participate as an investor. lisa: running out of steam and excessive risk taking. still with us is tracie mcmillion with wells fargo. do you agree

taylor: hey, caroline, and ofning me today is the ceo muni at invesco. rates just hit a 10-year high recently. you find is attractive in the rising interest-rate environment? >> thanks, taylor, good to be here. the fed is normalized on the short end of the yield curve -- the same thing for the municipal bond market. these variable rates and demand notes reset on a weekly basis. it is very good on a short-term strategy. some of the shorter and the duration funds are using the strategy because the price is very stable and the rights move up as the fed moves up. the flipside of that is the closing funds issued these of the cost of borrowing is going out very slowly. i could put pressure on dividends -- that could put pressure on dividends. for the short strategies we like the variable rates. taylor: another thing we saw this week was detroit. -- what was happening since the exited bankruptcy. i'm not sure detroit is out of the water you. would you be a buyer? mark: they are still very dependent on one business segment, the auto segment. interesting to look

we asked invesco to defend it. tonding father of etf looks infinity and beyond.nking of a space etf? and attention

increasingly at the center of conflicts and disputes as they were told it was a lot of god and that invesco. in india people too are being attacked now research is a teaming up with a must side to explore new avenues in an effort to protect the remaining lands. the mind and the lions can't be saved then something's gone terribly wrong one of us high school math is the king of beasts at risk of dying out here. the ingrown goto crater in tanzania it's an inactive intact unfilled volcanic caldera and an attractive habitat for lines. here the world of the big cats appears to be in order but looks are often deceiving lion populations of collapsing all over africa over the past century their numbers have decreased by ninety percent and they've disappeared from at least fifteen countries . these figures have conservationists worried if there is no hope for the king of the beasts what then philip hensher from germany works for panthera an organization dedicated to the conservation of the world's wild cats. and some of sweden is a biologist with the in go wrong good or lion project they are committe

we asked invesco to defend it. a founding father of etf looks to infinity and beyond.is the thinking of a space etf? and oil rally

. >> christina hooper with invesco. appreciate your thoughts tonight. ank you. >> thank you. >>> it is time to take a look at some of today's upgrades and downgrades. nordstrom was upgraded from buy to hold from deutsche bank. they cite the stock's valuation and they expect to gain traction throughout the year. the price target is . shares rose 4% to $47.62 >>> shake shack was downgraded from neutral to buy at long bow research. the analyst cites the 60% run up stock in the past six months and now is the time to stop buying shake shack shares. the firm is telling clients to wait for a pull back before getting back in. the stock fell just a fraction to $57.89. >>> analysts are at odds over celgene. the analysts say the stock's valuation is too cheap to ignore. set the price target at $102. another analyst though disagrees. arg g argus research downgraded celgene from hold to buy. the risks outweigh the rewards given the medication revlemed. theplit call hadcelgene shares higher by more than 1% lotoday. itd at $77.67. >>> stilld, ah real estate goes high

we know that unum and lincoln, certain asset managers like invesco, amp, and so forth so it's banks, but it's also other interest rate sensitive stocks this is the important thing about small cap. waiting in the russell 2000, financials is 18%. so some of the outperformance in regional banks now has to be called into question if indeed this presumptive rate move higher is still not going to happen >> do you like this trade dan has put on >> i do like this tread. this week we saw exception ealy low volatility we saw the vix going down to 13. options are getting a lot cheaper. when we look at put spreads, one of the metrics we like to look at, if you're buying a put spread close to at the money, if you can buy that a quarter of the distance between the strikes, which would be a dollar, that's a good bet. this is quiete a good deal when you look at it because he's spending only 90 cents and this thing is slightly in the money already. when you think about the extrinsic premium you're spending for that spread and getting it until september, it's a bearish bet. >> i want to make one more

welcoming christina cooper -- kristina hooper with invesco.t is a first quarter slowdown, not different from what we have had in the u.s.. no suitably a factor, but my view is growth will pick up in the second quarter. david: what about the strength of the euro? will it curtail growth? kristina: only if it gets out of control. it is an a place where growth can continue and get more robust , but if it gets very strong, it can be problematic. david: germany said part of the problem was trade where they were hurt. what would have caused that? kristina: there are a variety of factors. germany may be looking to focus specifically on trade to narrowly, but there is concern about what happens to germany in a world with the trump administration in charge with the united states. much of what was expected and relied upon is now uncertain. ist we know about history that economic policy uncertainty doesn't create an environment where business investment floor shows. .hat could be -- flourishes that could be a problem because of trade policy. julia: on the

obama, when he was nominated, he went to that invesco field speech in denver, they brought in the bigan columns. david was involved in producing it. he was really good at stage production. here we have trump at 3:00 in the morning to greet the hostages and everybody is having a meltdown on t. >> this is a sad spin. the president went to give a heros welcome, to make it about them. some just have to mock or minimize or deny great t what should be a celebratory moment for the country becomes another anti-trump story. he didn't show enough empathy, didn't bite his lower lip. this is why people hate the press. >> laura: leslie, here's a yahoo! headline. trump cheapens north korean hostage return with ratings comment. that's just trump. he's making off-hand. he's not making it about himself getting ratings. this compared to bill clinton. here's ted line from there. they had key roles. we havee the full screen. bill clinton and journalists in emotional return to u.s., august prisoners released from north korea. the double standard, whether you are republican or democrat, have some fairness.

right from the beginning, obama, when he was nominated, he went to that invesco field speech in denverumns. he was good at stage production. here we have trump at 3:00 in the morning going to greet the hostages and everybody is having a meltdown. >> the president went out to give them a hero's welcome. some have to minimize it. it becomes another anti-trump story. he didn't show enough empathy, he didn't bite his lower lip and feel their pain. same thing when he went to visit the hurricane victims. >> laura: leslie, here's a yahoo! headline. trump cheapens north korea hostage return. he made an off-hand comment about we'll get ratings at 3 in the morning. that's trump. he's not making it about himself getting ratings. this compared to bill clinton in 2009, here's headlines, release of journalists, both clintons had key roles. bill clinton and journalists, emotional return to the u.s., august 5, 2009 when he got prisoners released from north korea. the double standard, whether you are a republican or diplomat, have some fairness. >> i have to say, i am a democrat who loves to attack the

. >> single best chart is brought to you by invesco, who asks what people really invest in. ♪ francine i know you will be tuning in later today. big decisions why we hear from sink any financial -- synchrony financial's chief executive. 9:30 london time -- new york time. .om: single best chart on oil i'm dazzling the professor with my french. real.c konstam, this is all of a sudden we are back to $80. what does deutsche bank say about this new place for oil given all the other instabilities out there? economic level, obviously it is sort of bad news for the consumer. at least in the u.s., we have the fiscal stimulus. the argument is it is going to be sort of a wash. tom: what about in non-dollar-denominated parts of the world? >> that is part of the problem. that is partly why you're seeing with the rising rates as well the risk of yen and the emengthening dollar -- of and the strengthening dollar as part of that as well. back a couple years ago we had the big rebound. i think this is -- the big capex rebound. barrel, does$70 a it actually put a brake on consumption like the ia seems -