The Yen carry trade is dying.
Before April 2025, the USDJPY currency pair showed a close correlation with the 10Y rate differential between US and Japanese bonds.
This was driven by investors borrowing in Yen to fund higher-yielding US Dollar assets through the carry trade.
Before April 2025, the USDJPY currency pair showed a close correlation with the 10Y rate differential between US and Japanese bonds.
This was driven by investors borrowing in Yen to fund higher-yielding US Dollar assets through the carry trade.