It’s been two years since the Bank of Japan shocked markets with a surprise policy rate increase of 0.25% that helped trigger a violent unwind of yen-funded trades. On August 5, 2024, the VIX spiked as much as 180% intraday to 65.73 before closing at 38.57, and equities reeled. At the time, this squeeze propped up its currency against further devaluation and caught billions of carry trade participants with their pants down. Looking at today’s news, we would be hard-pressed to see that anything...
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