Carry Trade at Risk: Japan’s 10-Year JGB Yield Hits 25-Year High, Yield Curve Steepens, Finance Ministry Verbally Props Up Yen

The 10-year yield of Japanese Government Bonds (JGBs) jumped 7 basis points today to 2.09%, the highest since February 1999, continuing the surge that had commenced in late 2019, back when the 10-year yield was still negative due to the Bank of Japan’s Yield Curve Control.