Yen Carry Trade Unwind Warning

🚨 Japan’s Own Paper Nikkei Just Admitted: The Yen Carry Trade Is Unwinding and Volatility Won’t Stop Japan’s own financial paper, Nikkei, just flagged it in black and white: The massive yen carry trade is starting to come apart. The wild swings aren’t calming down. The people sitting on those positions are suddenly waking up to how fast one bad move can wipe them out. This isn’t some random journal on the Japanese Wall Street. This is Nikkei. And it lines up with what @yutokanzakireal revealed: The Bank of Japan has made the call to bring the Japanese wealth back to homeland by any means necessary. Japan has already dumped $87 Billion worth of their U.S. Treasury holdings despite Scott Bessent‘s interventions and overseeing BoJ operations. They want Japanese money brought back home. They’re done letting it sit overseas while the currency gets punished. Every attempt to paper over it failed. The threats, the interventions, the coordinated statements from the U.S. and Treasury, none of it stopped the trade from getting bigger. Scott Bessent overtook BoJ operations, called himself the house, dared traders to short the yen and now he says that he cannot control the bond market. Now the bond market is doing whatever it wants and he’s reduced to telling people to slow down before it snaps. Even the BoJ governor admitted that the hike cycle is not done whether the economy likes it or not. When the officials who were supposed to keep this contained start sounding nervous, and Japan’s own paper starts describing the retreat, the exit door is already getting smaller. Just one Tokyo fund broke the French debt market by selling their holdings to ZERO. Imagine what happens when BoJ indeed dumps their $1.2 Trillion U.S. Treasury Holdings.Quoting @yutokanzakireal: 日本の富が本国に帰ってくる。 手段を選ばず。 日本銀行はそう決めた。