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Daily Digest

Japan's steep yield curve creates 'reverse carry' trade

Published Wednesday, September 23, 2026

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Narrative Spectrum

Convergent Narrative · 0
  • Single-Source Coverage1 source

What We Know — Key Points

  • The 30-year Japanese government bond above 4 per cent, when swapped in any developed-market currency, gives an FX-hedged yield 100 to 200 basis points higher than the base currency equivalent.

What Is Claimed — Perspectives

Single-Source Coverage
  • Channel News Asia

    The article emphasizes how the steepening Japanese yield curve and BOJ rate hikes are shifting investment strategies, making ultra-long Japanese government bonds attractive for a "reverse carry" trade.

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