Core PCE is closer to 3 than 2
And ticked UP in the last month Source: Amy Niyom
🚨 US ELECTION UPDATE >>> The "Trump trade" took a hit yesterdy (see bitcoin now trading below $70k).
One of the reasons could be this: Yesterday saw a big jump in Kamala's Michigan odds where she is again back on top; Wisconsin is also on the cusp of going back blue. After Trump had a comfortable lead in all swing states over the past week (he still leads comfortably in AZ, NC, PA, NV, GA) there has been a reversal in MI and WI. Thuis makes the race tighter hence some profit taking. Source: zerohedge
UK borrowing costs hit highest level this year as gilt sell-off intensifies.
This should not come as a surprise, Eurizon SLJ Research's Stephen Jen says: When the debt stock is 99% of GDP, and the govt imposes the largest tax hike post-WWII and the largest increase in spending in multi-decades, why should one be surprised that the bond market shows signs of indigestion? Source: HolgerZ, FT
Since The Fed cut rates, USA Sovereign risk has exploded higher...
Source: www.zerohedge.com, Bloomberg
Why is it happening?
With Interest Expense soaring and US debt/GDP at 125% & rising, the only way the US can keep USTs nominally money good are via negative real rates. hence the gold outperformance. Source: Bloomberg, Luke Gromen
Interesting point of view by Dr. Ed Yardeni:
"28 days since the 1st rate cut and 10-Yr. yield is up nearly +60bps. The 1995 Soft Landing rate cut cycle is almost a mirror image, as it also started its descent a few days later, a potential post-election outcome". There is one big difference though: the fiscal 6 debt situation in the US now vs. 1995... Source: Seth Golden @SethCL
Inflation surprises are picking up since Fed rate cut...
Source: www.zerohedge.com, Bloomberg
😱 Do you remember Beyond Meat ?
Source: Radar
