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The UK 30-year yield hits the highest level since ’98. (0:15) U.S. job openings decline less than feared. (1:11) Burry exits GameStop after Cohen targets eBay deal. (2:52)
This is an abridged transcript of the podcast:
Our top story so far, global borrowing costs continue to climb as elevated oil prices fuel expectations that central banks may need to tighten policy to contain renewed inflation pressures.
In the U.K., long-term government borrowing costs have hit their highest levels in nearly three decades. The 30-year gilt yield briefly topped 5.8% — the highest since 1998 — before easing back as traders priced in two to three quarter-point rate hikes from the Bank of England this year.
Economist Jim Bianco highlighted the move: “On September 27, 2022, the UK 30-year yield hit 4.99%. This was so intolerable that Prime Minister Liz Truss was forced to resign. Today, the UK’s 30-year yield is 77 basis points higher.”
In the U.S., the 30-year Treasury yield (US30Y) recently moved back above 5% for the first time since July, underscoring persistent pressure in the world’s largest bond market.
Ten-year U.S. inflation expectations have also climbed to their highest level since 2023.
You can see how 30-year yields across major economies compare in our story on Seeking Alpha.
Also on the economic front, U.S. job openings declined to 6.866M in March from 6.922M in February, according to the latest JOLTS report. That was above the 6.656M consensus, suggesting labor demand is cooling but not collapsing as the Iran war clouds the outlook.
The job openings rate edged down to 4.1% from 4.2%. The quits rate ticked up to 2.0% from 1.9%, a modest sign of continued worker confidence.
Pantheon Macro noted that openings are running about 3% below their 2025 average, with government openings down 8.6% and private openings off 2.4%. The firm added that unofficial indicators still point to fading labor demand, potentially at a faster pace since tensions in the Middle East intensified.
Among active stocks, Duolingo (DUOL) is slipping despite better-than-expected Q1 results, as a softer growth outlook and stepped-up investment in long-term initiatives weighed on sentiment.
The company maintained its full-year revenue forecast of about $1.21B but guided for bookings growth of roughly 10% to 12%, signaling some moderation in near-term momentum.
Pfizer (PFE) topped Wall Street estimates for Q1 and reaffirmed its full-year outlook.
But SA analyst Edmund Ingham noted that while the drugmaker handily beat “ambitious” earnings projections, shares remain down about 35% over the past five years, and a full recovery is unlikely to be triggered by today’s results.
And UnitedHealthcare (UNH) said it will eliminate prior authorization requirements for 30% of healthcare services that previously required insurer approval.
By the end of 2026, the company plans to remove an additional 30% of remaining prior authorizations, including select outpatient surgeries, some diagnostic tests such as echocardiograms, and certain outpatient therapies and chiropractic care.
And in other news of note, Michael Burry has exited his entire position in GameStop (GME), reversing his earlier bullish stance after the company unveiled plans to pursue a $56B cash-and-stock acquisition of eBay (EBAY).
GameStop shares fell 10% Monday — the largest intraday drop in 10 months — after CEO Ryan Cohen confirmed the proposed deal. EBay’s market value is more than four times that of GameStop.
Burry had previously supported Cohen’s effort to use dealmaking to transform GameStop into a Berkshire Hathaway (BRK.B) (BRK.A)-style holding company. But he now argues the scale of debt required to acquire eBay undermines that thesis.
“Wall Street does indeed mistake debt for creativity, and does so constantly,” Burry wrote. “I of all people should have known.”
He added that the “Instant Berkshire” strategy was never compatible with leverage above 5x debt-to-EBITDA or interest coverage below 4x.
