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 highlighted spring wage talks for FY2027 as key for inflation trends, and said policy will not be swayed by board changes.
BOJ Governor Kazuo Ueda offered additional remarks during his press conference.
His emphasis on wage negotiations is expected, as such talks are at the heart of the BOJ's next policy moves. In the previous fiscal year, this focus also proved to be a double-edged sword.
The central bank preferred to delay tightening until it had solid proof of increasing wage pressures from the spring negotiations.
Although preliminary figures indicated trends in February and March, the BOJ held off until June. By that time, the economy had suffered from rising oil prices linked to the US-Iran conflict, along with a "bad" mix of cost-push inflation seeping in.
Thus, Ueda's renewed focus on wage talks could disappoint yen bulls who anticipated faster rate hikes.
Ueda did not dwell on the dissenting votes from Asada and Sato during the press conference. He made it clear that the BOJ will proceed regardless of potential changes in board composition, such as the departures of Naoki Tamura and Hajime Takata in July next year.
These departures give Prime Minister Sanae Takaichi another chance to appoint new members, following Asada and Sato. This could tilt the BOJ further toward a dovish stance by the same time next year.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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.