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

still with me around the table, from new york is mike from goldman sachs. and diana from jpmorgan.illion dollars of demand. the 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 y

from new york, mike from goldman sachs, robert and diana.an offering, $46 billion of demand just comes in. the wall of demand meeting the flood of supplies. your thought on that? robert: i think the markets are open, there is a ton of liquidity. the craziest manifestation of that is 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's not a lot of product. the dollar markets are open, a wide range of products. the spread, given where we are in the cycle, i'm not sure we will have some kind of event, they are more than adequate. jonathan: was it the fact that it is the chinese come of the fact it is a tech company or just that it is a single-a issuer with a better yield? michael: i think it is the latter. i don't think it being a chinese company is attractive to too many people. there is an enormous amount of capital in asia. it is really earning nothing right now. we have concerns, particularly around ch

longest portions of the order, 1.58 percentage points over comparable government debt. , mike from goldman sachs diana. , $46 billion of demand just comes in. the wall of demand meeting the flood of supplies. your thought on that? robert: i think the markets are open, there is a ton of liquidity. the craziest manifestation of that is bitcoin. but there is a spectacular places whereey in the rates are incredibly low, whether it is japan, coming out of china, coming out of korea, the rates are very low, there's not a lot of product. the dollar markets are open, a wide range of products. the spread, given where we are in the cycle, i'm not sure we will have some kind of event, they are more than adequate. jonathan: was it the fact that it is the chinese come of the fact it is a tech company or just that it is a single-a issuer is a better yield? think it is the latter. i don't think it being a chinese company is attractive to too many people. there is an enormous sum of n asia -- and enormous amount of capital and asia. concerns, particularly around china, even though you have a high-quality compan

from new york, mike from goldman sachs, robert and diana.t an offering, $46 billion of demand just comes in. the wall of demand meeting the flood of supplies. your thought on that? robert: i think the markets are open, there is a ton of liquidity. the craziest manifestation of that is 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's not a lot of product. the dollar markets are open, a wide range of products. the spread, given where we are in the cycle, i'm not sure we will have some kind of event, they are more than adequate. jonathan: was it the fact that it is the chinese come of the fact it is a tech company or just that it is a single-a issuer is a better yield? michael: i think it is the latter. i don't think it being a chinese company is attractive to too many people. there is an enormous amount of capital and asia. it is really earning nothing right now. we have concerns, particularly around c

mike flynn is sharing convicted but cooperating. >> that was hallie jackson >>> we just lost our guest from goldman sachs. we can talk about the company now. it raised its outlook for crude oil price for 2018 citing strong commitment by opec members and low inventories. they forecast brechnt will hit 6 a barrel goldman explained it saw risks skewed to the upside in 2018 due to potential overtightening. >>> in asia, japan is ramping up its missile defense system as north korea accelerates development of long-range missiles that fly over japan and beyond makiko joins me from tokyo >> yes japan will overhaul its missile intercept command system starting next april to cope with advances in north korea's weapons technology the current system detects incoming missiles via radar and data from american military satellites and determines the rocket's trajectory and point of impact if the missiles are expected to strike japan, interceptors are ordered to shoot them down, but many believe the system does not have the capacity to deal with the high powered trajectory. the system upgrade will begin next april with a b

goldman sachs, and mike bloomberg, the founder and majority owner of bloomberg lp. one of the big winners in mobile payments, sales up 41%, the stock up 150%, we bring in our highlights fromth squares of jack dorsey. this is bloomberg. ♪ jack dorsey. this is bloomberg. ♪ cory: square, the payment company led by jack, has seen its shares double, up 150% this year. this is because of investor formism and the offerings merchants. we sat down with jack dorsey, part-time ceo of twitter as well, but looking at second-quarter earnings, emily asked him what he thinks of sky high tech valuations. check it out. >> i am not an economist. i don't know how to answer that question. we live in a market, and a market has decided the value of this particular thing. it always has ebbs and flows. it is not something we control. whether people use what we are building, and our job is to make sure that answer is yes and they want to use it so much that they can't help but talk about it with people who want recommendations. i'm trying to get out of nasty contracts, where should i go? that is the thing we control and the thing we focus on. must have a keen insight into the health of the u.s. an