WS #15259
Global macro conditions are deteriorating, with US unemployment rising to 4.2% and NFP missing sharply at 29k. In Europe, French government bonds are slumping as investors demand higher yields, while Gabon's dollar bonds are performing poorly in emerging markets. This mix of US labor weakness and European fiscal stress limits the Fed's ability to hike and pressures rate-sensitive assets.
Macroeconomic Weakness & Policy
Global macro conditions are deteriorating, with US unemployment rising to 4.2% and NFP missing sharply at 29k. In Europe, French government bonds are slumping as investors demand higher yields, while Gabon's dollar bonds are performing poorly in emerging markets. This mix of US labor weakness and European fiscal stress limits the Fed's ability to hike and pressures rate-sensitive assets.