Tagged: boj
2 posts
MacroJapan's Carry Trade Unwind Isn't Over
The August 2024 yen carry trade unwind was not a one-off event. It was the first tremor. The Bank of Japan is still the largest buyer of Japanese government bonds and the second-largest foreign holder of US Treasuries. Every time the yen rallies, that position becomes a source of forced selling. The next tremor is closer than the market is positioned for.
MacroJapan's YCC Exit and the Global Liquidity Squeeze
The Bank of Japan abandoned yield curve control, letting 10-year JGB yields rise to 1.8%. The yen carry trade unwind is draining global liquidity.