Comments by "DrScopeify" (@drscopeify) on "FedWatch Founder Ben Emons talks the Japanese Yen carry trade" video.

  1. ​ @bps7209  You have it totally backwards, the US paper yield has collapsed which means people are BUYING not selling. The US 10 year is historic fall in yield, gonna make the US Treasury very very happy campers.
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  2. yomismo6969 Well when the bank of Japan raised their interest rates a few days ago it forced automatic liquidation of some of the most "delicate" trades the ones who set a sell order with the most minor increase so perhaps some big safe playing entities or maybe players who are ultra leveraged? The problem here is that Japan has a crazy level of debt and so this process is a major problem for the Japanese Treasury, the cost of debt will rise dramatically if the carry trade unwinds. The impact will be a cut in Government spending in Japan which is not good becasue Japanese society is heavily dependent on the Government pocket book, around 45% of the Japanese economy is Government spending so cutting spending is a problem
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