Dollar-yen liquidity machine fuels endless swaps, carry trade deepens global leverage. Is the Carry Trade at risk again?
Japan Is the Fuse. The U.S. Is the Bomb. The cracks in global bond markets just turned into fractures. Japan’s 20-year government bond (JGB) auction was the worst since 1987. Bid-to-cover ratios collapsed. Yields on the 30-year spiked to 3.12%, …