I’ve read various ‘explanations’ for today’s risk off move, but the main culprit is likely a preponderance of longs. We will see if we get a ‘turn around Tuesday’ tomorrow, but the central expectation here continues to be broadly choppy price action that resolves lower.
- Japan’s public pension fund is considering reducing its 67% allocation to fixed income. The fund manages 108 trillion ($1.16 trillion) in assets. The funds president Mitani said: “If we think about the future and if interest rates go up, then 67 percent in bonds does look harsh… We will review this soon. We will begin discussion for this in April-to-May. Any changes to our portfolio could begin at the end of the next fiscal year.”
- The Non-manufacturing PMI in China increased to 56.2 from 56.1.
- Mon: China HSBC Services PMI, RBA
- Tue: European Services PMI, US ISM Non-Manufacturing
- Wed: Crude Oil Inventories, Australia Employment
- Thu: Carney questioned by UK Parliament, BoE, ECB