New Zealand–JGB 10Y Spread

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