Godzilla's Rebirth: The Yen Roars And Shakes Up Markets

The yen’s surge signals a broader shift: Japanese investors are increasingly treating rising JGB yields as sufficient to keep capital at home, rather than maintaining carry positions abroad. The move implies a change in the “price of Japanese capital” as JGB yields rise, reframing the episode from a one-off carry-trade scare to potential capital repatriation.