Forget Korea, Japan Could End The Bull Market

Japan’s 10-year yields have reached 2.88%, the highest since 1996, signaling a major shift in global risk dynamics. The yen is at a 40-year low, and aggressive Japanese fiscal expansion is intensifying pressure on the carry trade. Unwinding of the yen carry trade could trigger global market disruptions, particularly impacting U.S. equities and risk assets. Hedging strategies such as gold, shorting the dollar, or long volatility are increasingly relevant given these macro risks.