Why The Aussie Yen Carry Trade Matters To Risk Assets
Market Depth
The Effect of the RBA's Yield Curve Control on the Australian Dollar
On March 16, 2020 or whatever that date was somewhere around that day, okay, something crazy happened. The RBA joined the Bank of Japan and became the second and only other major central bank to institute yield curve control. And so now what do you have? So you have JGB yields pinned down by policy of the Bank ofJapan's yieldscurve control,. That is fantastic for carry traders, right? Because the funding half of the, you know, of the pair's yield volatility has been subdued by BOG policy. But then in addition to that, you now have the RBA now pinning all the yields down with RBA's yield curve control - thereby dampening or
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