


Tech stocks drag global markets down in a week marked by risk aversion and corporate earnings reports. Crude oil prices drop, providing relief to U.S. Treasury bonds.
The risk of liquidation in the yen carry trade has resurfaced as a macro variable for risk assets, including Bitcoin (BTC), during a phase of dollar weakness. Funds raised at low yen interest rates are impacting forex, stocks, and crypto.
The long-term U.S. Treasury yield remains in the 5% range, reviving discussions on arbitrage strategies that involve borrowing at low rates to purchase higher-yielding assets. However, focusing solely on nominal yields can overlook cash flow and exchange rate risks.