mohammed el-erian, robert tipp, and lisa abramowicz.t do you make of the surge in issuance going into a rising rate environment? mohamed: it is totally rational corporate behavior. they are taking advantage of spreads and issuing ahead of what they think will be a rise in government interest rates. i think it is totally rational and the question is why investors have not been more hesitant when it comes to buying all of this stuff. jonathan: why haven't they? lisa: you have the international investors in the u.s. and also the animal spirits. if things will get better and yields will go up, at least credit has a cushion of extra spread. that is shrinking dramatically and investors are not getting compensated as much as they should be. jonathan: robert? robert: even though the fundamentals have peaked the liquidity is there and the default tend to stay very loud. remain verytends to good through the fed rate hiking cycle until the fed actually it maybe recession so way too early for investors to be getting pessimistic. jonathan: there hav

mohamed el-erian sticking with us, robert tipp icking with , and lisa abramovitz.ext on this program, we take it to the auction block, putting us on course for a record issuance. in for viewers worldwide, this is bloomberg real yield. ♪ ♪ jonathan: i am jonathan ferro. this is bloomberg real yield. i want to go to the auction block where we are potentially seeing something that has not happened so far this century, investment-grade firms are on track to complete the busiest quarter for u.s. debt sales since at least 1999. appleton morgan stanley have pushed new issues to more than $17 billion. getting in on the action, siemens, offering $7.5 million in bonds, its largest in bonds sales. in europe, we have had 54 consecutive business days for issuance exceeding last year's longest run of 51. this month alone, we have seen over 50 billion euros of debt issued in that area. i want to bring back to the roundtable mohammed el-erian, robert tipp, and lisa abramowicz. mohammed, to begin with you, what do you make of this surge in issuance we have had going into a rising r

mohamed el-erian sticking with us, robert tipp, and lisa abramowicz.the markets this week, what a week it has been for sovereign debt. they will build through the week. negative five basis points, 1.3% on the two-year. the 10 year rallying by nine basis points. it will be 30 year coming in by six. coming up on this program, the final stretch. g-20 finance ministers meet in germany, and janet yellen taking the stage once again. this is bloomberg "real yield." ♪ ♪ jonathan: from new york city, i'm jonathan ferro. time for the final spread a -- where we take a quick look at what is coming up ov nexer the week. it will include another speech by the fed chair, and shinzo abe will be in germany as well g-20 finance ministers, where e.m. will likely be discussed. if you look at the bloomberg e.m. index, it shows the group has mostly performed better than expected with donald trump and the white house. i want to bring back our roundtable. mohamed, beginning with you, you talked about the experienced with the emerging markets. it was so easy to paint a pessimis

includeal yield, guests mohamed el-erian and robert tipp, plus we are awaiting trump's meeting with angela. that is the big event taking place in the white house. this is bloomberg. ♪ dedicated30 minutes to fixed income, this is bloomberg real yield. ♪ coming up, the federal reserve delivers a dovish hike and treasuries rallied. how chair yellen can pull off a beautiful normalization. what could be a record -- cracks begin to appear once again. the uncertain world of politics collides with g-20.