{"id":43031,"date":"2026-04-07T09:46:08","date_gmt":"2026-04-07T07:46:08","guid":{"rendered":"https:\/\/marcello.giuliopalmadori.it\/?p=43031"},"modified":"2026-05-25T09:52:24","modified_gmt":"2026-05-25T07:52:24","slug":"ycc-carry-trades-and-the-changing-role-of-the-yen","status":"publish","type":"post","link":"https:\/\/marcello.giuliopalmadori.it\/en\/ycc-carry-trades-and-the-changing-role-of-the-yen\/","title":{"rendered":"YCC, carry trades and the changing role of the yen"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">For years, the Bank of Japan\u2019s yield curve control strengthened the yen\u2019s role as a funding currency for global carry trades by compressing yield volatility and stabilising funding conditions. As that regime is gradually adjusted, the link between exchange rates, yield differentials and risk has become less linear: interest rate spreads still matter, but volatility, hedging costs and investor positioning matter increasingly more.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For years, the Bank of Japan\u2019s yield curve control strengthened the yen\u2019s role as a funding currency for global carry trades by compressing yield volatility and stabilising funding conditions. As that regime is gradually adjusted, the link between exchange rates, yield differentials and risk has become less linear: interest rate spreads still matter, but volatility, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":43033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,48],"tags":[126,125,93],"class_list":["post-43031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economist-2","category-op-eds-2","tag-interest-rates","tag-macro-economy","tag-yen"],"acf":{"related_news_outlet":42318,"related_university":"","documenti":[{"link_esterno":true,"url_esterno":"https:\/\/www.risk.net\/markets\/7963307\/ycc-carry-trades-and-the-changing-role-of-the-yen?ref=search","documento_file":null,"testo_bottone":"leggi_articolo","testo_bottone_personalizzato":""}],"head_post_view_immagine_logo":false,"head_post_immagine_logo":null,"head_post_testo":""},"_links":{"self":[{"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/posts\/43031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/comments?post=43031"}],"version-history":[{"count":3,"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/posts\/43031\/revisions"}],"predecessor-version":[{"id":43042,"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/posts\/43031\/revisions\/43042"}],"acf:post":[{"embeddable":true,"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/testata_media\/42318"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/media\/43033"}],"wp:attachment":[{"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/media?parent=43031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/categories?post=43031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marcello.giuliopalmadori.it\/en\/wp-json\/wp\/v2\/tags?post=43031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}