Absolutely! 🚀 With JGB yields hitting a 16-year high, it’s definitely catching the eye of carry traders.
The yen’s traditionally been a funding currency for carry trades due to its low yields, but this spike could shake things up.
If the BoJ keeps tightening or yields stay elevated, it might reduce the yen’s appeal as a funding currency, potentially impacting classic carry trade pairs like AUD/JPY or NZD/JPY.
On the flip side, it could open up new opportunities for traders to capitalise on shifting interest rate differentials.
