Canada–JGB 10Y Spread

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