Should we worry about rising JGB yields?

After initially declining, JGB yields are now higher than they were before the Bank of Japan announced its bold monetary easing. This result is not as perverse as it may seem, nor is it necessarily alarming. The fact that JGB yields are slightly higher and might rise further does not mean that the Bank’s policy is doomed to fail. Indeed, to the extent that any increase reflects higher expectations for inflation, it might be deemed a sign of success, and real interest rates could still be lower than otherwise.