Japan's Record Bond Yields Put Yen Carry Trade Back in Focus: Could This Spark Fresh Trouble For US Markets?

Japan’s 30-year treasury yields touched their highest level on record, at 3.52% on Tuesday night, a 48-basis-point increase since November, sparking concerns of potential fallout across the U.S. and global markets. Deteriorating Fiscal Conditions Push Yields Higher After decades of serving as the world’s low-yield anchor, with negative short-term interest rates, Japan’s government bond yields have surged significantly over the past year. This comes as concerns mount over Japan's fiscal trajectory, after ...