source avatarSolomon

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The data is in, and it's a stagflation nightmare. UK unemployment just hit 4.7%. U.S. pending home sales crashed -7.3%. Yet German PPI printed at 1.9%. Growth is cracking. Inflation is sticky. The bond market is the casualty. • U.K. Unemployment: 4.7% (vs 4.4% prior) • U.K. Avg Earnings: 3.7% (Cooling, but still above target) • U.K. Claimant Count: 30.3K • U.S. Pending Home Sales: -7.3% m/m • U.S. Housing Starts: 1.22M (missed 1.30M forecast) • German PPI m/m: 1.9% (Massive hot print) • GBP 10Y Auction: 5.42% (Bid-to-cover 3.6) • China LPR: Held at 3.00% & 3.50% Here's the nuance most headlines will skip. The U.K. jobs data is the worst combination: unemployment rising fast (4.7%) while wage growth (3.7%) remains too hot for the BoE to cut. Meanwhile, the U.S. housing market is in freefall under the weight of 5%+ yields - Pending Home Sales at -7.3% is a disaster. But Europe's pipeline inflation (German PPI at 1.9%!) proves the ECB can't pivot either. Watch the GBPUSD at $1.3250 and the U.S. 10Y yield. The bond market is breaking under the weight of this data. If growth is cracking while inflation stays sticky, which central bank blinks first?

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