Published Aug 28, 2026, 6:37 PM ET · Updated 3 months ago · 1 source
Failed JPY intervention and rising US yields increase Japanese carry trade unwind risk
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Original Report
The US Treasury's attempt to support the Japanese Yen by selling euro assets and buying JPY has failed, as the JPY has weakened past the 160 level against the USD. This failure, coupled with rising US Treasury yields and a bear flattening of the yield curve, heightens the risk of a rapid unwind of the Japanese carry trade, potentially leading to a crisis.