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Carry Trade — Why Higher US Rates May Be the Bull Market’s Insurance

Two central banks raised rates this week.

Thomas Look's avatar
Thomas Look
Sep 18, 2026
∙ Paid

The Federal Reserve hiked on Wednesday and the belly of the curve sold, the 10-year closed above 5% for the first time in the cycle, and the equity lines were lost at the bell. The Bank of Japan hiked on Friday morning, a quarter point to 1.25%, the highest policy rate in Japan since the mid-1990s and exactly what the wires expected — and the yen fell.

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