Replying to Avatar Connor Davis

What I don't understand is how a move to 0.25% is triggering the trade to unwind. Is the carry trade based on the delta between US rates and Japanese rates? If so there is still a pretty big difference between the US and JPY rates so why now? I'm sure there is nuance I'm missing.
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Ben Ewing 1y ago

I think the nuance you’re not appreciating is the scale. It’s not a trade between Yen and USD, it’s between Yen and US stocks. Even a small increase in your borrowing cost makes a big difference if the position size is big enough.

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