Introducing a new series called Short Take, where I try to explain complex goings-on in the financial markets and economy in digestible bits, and tie them back to the Bedokian Portfolio investment philosophy and methodology where relevant. Kicking off the series: a concise look at recent rising yields and the Japanese yen. Picture generated by Nano Banana and Chat GPT Global bond markets and currency values are undergoing significant shifts. The United States (U.S.) Treasury yields remain near multi-year highs due to economic strength, government borrowing, and sticky inflation, while Japan’s 10-year bond yield recently breached 3%, a level unseen since 1996. Meanwhile, the U.S. Federal Reserve (Fed) policy rate stands at 3.50–3.75%. These moving parts are interconnected and ripple through global portfolios in the following ways: The Yen Carry Trade For years, investors borrowed cheap yen at low interest rates to invest in higher-yielding U.S. assets. If the rate gap narrows, either via Fed cuts or  ...