A yen bug in search of a windshield

Reuters recently reported that Mitsubishi UFJ Financial has drawn up contingency plans to rid itself of long-term Japanese Government Bonds (JGBs) should the nation's current account slip into deficit. MUFJ expects the current account may slide into deficit in 2016, an event they believe would cause yields on 10 year JGBs to rise from 1.0% to 3.5%. Wond…