Bank of Japan

Knowledge Base Markets

What Is the Yen Carry Trade and Why Does It Drive Global Market Volatility?

How borrowing in Japanese yen to chase higher yields elsewhere creates leverage that unwinds violently when rate differentials narrow or risk premiums spike.

9 min read ·
Macro Markets

Japan’s 10-Year Bond Yield Hits 2.4%, Highest Since 1997, as Iran Tensions Trigger Global Risk Repricing

Surging JGB yields signal markets are pricing in sustained geopolitical premium and energy supply disruption, threatening yen carry trade unwind and developed-market capital flow reversal.

8 min read ·
Geopolitics Macro

Bank of Japan Holds Rates as Iran Conflict Splits G3 Monetary Policy Consensus

BoJ cites dual risks from Middle East disruption while Fed maintains hawkish stance, widening policy divergence and fragmenting global capital flows.

7 min read ·
Energy Macro

Bank of Japan Trapped Between Oil Shocks and Debt Burdens

Iran conflict forces Tokyo into impossible trade-off: tolerate imported inflation or choke growth with rate hikes as fiscal room vanishes.

7 min read ·
Macro Technology

Japan’s 5% Wage Demand Sets Stage for Further BOJ Tightening

Rengo's third consecutive year of aggressive wage demands signals labor market tightness that could keep interest rates rising through 2026.

8 min read ·
Geopolitics Markets

Americans Pay 90% of Tariff Costs as Supreme Court Forces Policy Reset

New research traces $287 billion in customs revenue to domestic consumers and businesses, while Bank of Japan holds rates steady amid diverging central bank policies.

8 min read ·