"Not Hedged Enough To The Downside": Nomura Says VIX Space "Remains Spicy" As Stocks Break Key Technical Support

De-Risking is back on the table as Nomura MD Charlie McElligott points out that (for a change), bonds are trying to work like "Risk Hedges" again, with USTs seeing a bull-steepening on further "Risk-Off" (Equities and Crypto with “real” struggle-sessions the entire month of November at this point), after Labor data this week - from Revelio (and its LinkedIn inputs, Caveat Emptor) indicating Oct Jobs would be about -9k along with downward revisions, alongside the earlier Challenger Job Cuts release showing the highest Oct print in 20 years @ ~ 150k cuts - got folks a bit uncomfortable…

But, the Nomura strategist is still surprised at just how “tame” the UST rally is today, even more surprising following Manheim Wholesale Used Vehicle Prices –data showed further decline in the back half of October, where the pace of the MoM decline accelerated…and seemingly should be indicative that CPI used vehicle prices should further at least help to offset Tariff-driven price pressures on CPI Core Goods prices, if not contribute to dragging Core Inflation outright lower.