The upward movement of long-term Japanese government bond yields means there's basically no need to worry about carry trades or similar strategies, as the market has already become desensitized through repeated friction.

What’s more important here is the AI-driven industry restructuring, which is systematically increasing the long-term capital demand and the median of risk-free interest rates in the US and allied countries. Japan is just one of the earliest economies to face this.

The US will inevitably face it sooner or later.

But this is not a problem; it’s just the growing pains of the early stage of the AI revolution Kondratiev cycle.