u/Easy_Lettuce9628

This chart is wild. Japan’s 10-year yield just hit levels not seen since the late 90s.

For decades everyone borrowed in cheap yen to buy US stocks, real estate, pretty much everything (the famous yen carry trade). Hedge funds, pensions, banks they were all in.

Now BOJ is hiking, inflation is back because of energy/oil shocks, and the yield is exploding. Every position that was short yen / long risk assets is sweating right now.

If this carry trade really starts to unwind hard, it could ripple into US markets, equities, and global liquidity fast.

Link to the chart & data: https://tradingeconomics.com/japan/government-bond-yield