{
  "id": 9366589,
  "title": "Japan's steep yield curve opens 'reverse carry' trade opportunity, Eastspring says",
  "url": "https://urgent.news/2026/09/23/japans-steep-yield-curve-opens-reverse-carry-trade-opportunity-9366589",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-23T15:38:34.000Z",
  "source": {
    "name": "CNA - Business",
    "slug": "cna-business",
    "url": "https://www.channelnewsasia.com/business/japans-steep-yield-curve-opens-reverse-carry-trade-opportunity-eastspring-says-6405886"
  },
  "original_language": "en",
  "account": "Japanese bond yields are increasing, presenting a reverse carry trade opportunity for overseas investors, according to Rong Ren Goh, a fixed income portfolio manager at Eastspring Investments. This shift is due to the Bank of Japan's interest-rate hikes making the traditional yen-funded carry trade less attractive. Japanese asset prices have experienced significant fluctuations following the simultaneous rate increases by the US Federal Reserve and the BOJ. Goh suggests that buying ultra-long Japanese government bonds and hedging yen exposure could yield higher returns compared to similar bonds in investors' home markets. The 30-year Japanese government bond now holds a yield above 4%, providing a 100 to 200 basis points higher yield than the base currency equivalent when swapped in any developed-market currency. Goh believes that the traditional yen-funded carry trade is no longer a \"no-brainer,\" as markets expect Japan's policy rate to reach around 2% from its current 1.25%. He anticipates the reverse carry trade gaining wider appeal as investors become more confident in the stabilization of Japanese bond prices, following a selloff that began in 2022. Eastspring, which manages $291 billion in assets, is adding shorter-dated dollar-denominated bonds while favoring ultra-long Japanese bonds to enhance credit spreads.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Channel News Asia",
        "title": "Japan's steep yield curve opens 'reverse carry' trade opportunity, Eastspring says",
        "url": "https://urgent.news/2026/09/23/japans-steep-yield-curve-opens-reverse-carry-trade-opportunity",
        "published": "2026-09-23T15:38:34.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}