Japan's 2-year yield just hit 1.66% — highest in 31 years.
Context: This matters because Japan held rates near zero for decades. When their yields climb, it signals real policy shift and impacts global carry trades.
Historically, rising Japanese yields have triggered:
• Yen strength
• Unwinding of leveraged positions funded in yen
• Pressure on U.S. tech stocks (less cheap capital flowing into risk assets)
Watch the yen and how U.S. markets react if this continues. Capital flows are shifting.
Context: This matters because Japan held rates near zero for decades. When their yields climb, it signals real policy shift and impacts global carry trades.
Historically, rising Japanese yields have triggered:
• Yen strength
• Unwinding of leveraged positions funded in yen
• Pressure on U.S. tech stocks (less cheap capital flowing into risk assets)
Watch the yen and how U.S. markets react if this continues. Capital flows are shifting.