jonathan: i'm jonathan fehro. this is bloomberg "real yield." a possible governing agreement by monday between the five-star movement and league parties in italy potentially ending a lock. the e.u. giving an update on talks. there's been a lot of pain in the peso recently. lisa holmby from stratus and michael with me. it's great to have you with me. lisa, i'm not giving you a hard time because you did disclose last time iran, you did talk about the short iran. >> as you said we've had it on for a little while. it's not worked in our favor recently. when you think about the italian wing spread was. we're talk about 200, 15 basis points. now we see a populace movement beening the governing party. five-star northern league and the market doesn't seem to care. we're 130 bases on that spread. >> the market doesn't seem to care about a lot right now. i don't think it should get tiringt. it should widen out as far as the risk is pretty significant. >> what is it associated with the italian debt? >> i mean, that's a valid point. we think that if you sta

." ♪ ♪ jonathan: i'm jonathan fehro. to the option block. united states sold $3 trillion this week in bonds. i want to focus on the record size auction for that maturity. it drew a yield of 3.3%, the highest since 2017. indirect bidders purchased the most since january. we go over to europe. italy holding a bond option trying to form a populace government. an average yield of 1.34%. the offering was met with solid demand. finally, in emerging markets, ghana defined the recent turmoil as it extends a record setting year for africa. it's on demand for its bond exceeds supply four times. still with me to talk a little bit about emerging markets is george from wells fargo, lisa holmby, and michael cannon. is george from wells fargo, lisa holmby, and michael cannon. michael, we brought this up last week on the program, and the em pain has just continued. june 2017, argentina can come to market. access and issue a century bond. a year later they're requesting imf aid. is this an argentina issue, or do we have a broader em story where things got to

." ♪ ♪ jonathan: i'm jonathan fehro. this is bloomberg "real yield."e governing agreement by monday between the five-star movement and league parties in italy, could happen next week, potentially ending a deadlock there area plus, china and the u.s. are in trade talks. the e.u. giving an update on breaks it talks. and as central bank decision coming up from mexico, where there has been a lot of pain in the peso recently. it's great to have you with me. lisa, i'm not giving you a hard time because you did disclose last time you were on, we talked about that short italy trade. how difficult is it to short btps when the politics at the moment don't seem to matter? lisa: that is when you have to have the short on. we've had it on for a little while. it's not worked in our favor , at least recently, but when he think about where the italian winds spread was ahead of the french elections, we are talking about 215 basis points. now we see a populist movement in it of the governing party. five-star, northern league, and the market does not seem to care. we are