Brazil–JGB 10Y Spread

The Brazil–JGB 10Y spread is the yield on Brazil's 10-year government bond minus the yield on the Japanese 10-year government bond (JGB). It represents the carry-funding differential. Because the yen is a primary global funding currency, a wider spread makes Brazil a more attractive target for yen carry trades, while a narrowing spread or a Bank of Japan tightening move can trigger carry unwinds.