'm jonathan pharaoh. -- farro. this is "bloomberg real yield." coming up, weaker than expected inflation. the yield curve flatted since 2007. a year ago argentina issue as century bond. year later they request time. populace party in italy can p.t.p. with a very little storm. is 4% the new 3%? >> is there a possibility the quotes accelerates then inflation accelerates. it's higher than you expect, both in the short end in which my opinion would have it go up. people should be prepared for that. >> we're not in a normal situation but we are getting closer so that state. i think the u.s. economy could handle it. it's consistent with economic fundamentals. >> the real catalyst to getting us to a forehandle is probably not the fed. government issuance in this country as demanding that it will be for the market to absorb. it will be when the ecb and the market of japan will suggest -- ness of monetarily monetarily. >> we get huge foreign demand into the u.s. four is a little tough any time soon. >> joining me around the table s the head of global we b

. ♪ jonathan: i am jonathan pharaoh. coming up over the next week, a and u.k.that u.s.e will be closed have the g7 ministers for central bankers. spots, -- as we look ahead to the payroll, we see the payroll market. and stability has come about. -- 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 stability that has come about at the front end of the curve. two-year yields close out the week for the fourth straight week. what did you make of the stability at the front-end? what is the signal that comes from that? matt: we had such a big run-up earlier in the year where everyone was concerned about inflation. we have gotten to a much more stable place. we felt the fed minutes this past week were telling you that the fed is for three for all of 2018, and that is why the two-year has held where it is. jonathan: how important is that? henry: the fed is pretty importa