Timmer Questions 60/40 Portfolio Revival Amid Weakening Stock-Bond Link
Fidelity's Jurrien Timmer questions the 60/40 portfolio comeback as higher Treasury yields sustain a positive stock-bond correlation.
BOJ Governor Ueda stated the bank will continue to raise rates in response to economic and price developments, noting inflation overshooting risks.
Following the BOJ's policy decision earlier in the day, Governor Ueda made these key remarks during his press conference:
Ueda refrained from discussing the dissents and their potential impact on the BOJ. However, he confirmed that the central bank remains on track to tighten policy further based on recent economic and inflation developments.
Ueda avoided making any advance commitments on the timing or pace of future rate increases, but he kept the possibility open for now.
The initial remarks suggest he is not significantly troubled by the dissents from Asada and Sato, sending a key signal to markets that the BOJ can still act as needed even if the dissenting members appointed by Takaichi maintain their positions.
The USD/JPY pair dropped from 157.10 to 156.70, trimming some of its earlier gains for the day.
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Fidelity's Jurrien Timmer questions the 60/40 portfolio comeback as higher Treasury yields sustain a positive stock-bond correlation.
The Bank of England is expected to raise Bank Rate to 4% on Thursday, its first hike of this cycle, with inflation at 3.5%.
Japan's services PMI rose to 51.7 in October, but the composite PMI slipped to 52.1, a five-month low, as hiring slowed and cost pressures persisted.
September data showed Australia's goods surplus at about A$2.8 billion, a seven-month peak, with LNG and metals exports up and gold imports down sharply.