Yen rates losses from tariff drama top $1 billion
Losses came from forced unwinds of bets on BoJ rate rises
Banks and hedge funds suffered big losses on Japanese interest rate positions after US President Donald Trump’s tariff announcement on April 2 sent yen yields on a rollercoaster ride.
The losses, which a senior rates trader at a European bank estimates at more than $1 billion across banks and hedge funds, came from forced unwinds of leveraged linear and options-based bets on Bank of Japan rate rises, which turned sour after the tariff announcement caused Japanese government bond (JGB) yields to
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