Thx, been watching that lately. I’m not an expert on the carry-trade, but maybe the JPY 40-yr is irrelevant to it (too long a maturity, carry-trade prob entails borrowing on a much shorter end of the curve in Yen to invest in $USD (stocks, etc..) or maybe this was seen coming for a long time & the YEN-to-$USD carry trade has moved elsewhere?

Or maybe global equity markets are ignoring it for now & it will ultimately matter (rates on all ends of the yield curve on Japanese bonds have been moving higher).

Here’s the JGB yield curve out to 30 yrs with the current vs. 1-mo & 1-yr ago comparisons: https://www.tradingview.com/markets/bonds/yield-curve-japan/

“Japanese government bonds have been scaling new peaks over the past month. On Thursday, yield on the benchmark 10-year JGBs hit a high of 1.917%, surging to their strongest level since 2007. The 20-year JGB yield reached 2.936%, a level not seen since 1999, while 30-year hit a record high of 3.436%, LSEG data going back to 1999 showed.”

Levels seen before the dot com bubble and 2008 global financial crisis?