yen carry trade

“With this particular trade, JP Morgan yesterday, or a few hours ago, said that they think about 75% of the yen carry trades have now been unwound, and it was at 50% a little over a day ago, so the market has moved to kind of unwind these trades, it seems, and …”

“The yen carry trade has injected roughly 20 trillion dollars of liquidity into the global economy, and that is propping up all sorts of things, right?”

“Then it looked like it unraveled itself. And so people thought, oh, we're probably mostly past this. I actually think we're not.”

“When that trade unwinds, what you're going to have are net sellers of up to, as Freebrooke said, a trillion plus dollars of US treasuries. What will that do? It will further exacerbate the market's reluctance to own US treasuries, which means yields go even hi…”