Conclusion: Mixed Bag, Leaning Toward Challenges For Japan as a whole, the surge in JGB yields is a double-edged sword. It’s "good" in that it reflects a potential exit from deflation and stagnation, attracting investment and aligning with monetary normalization. However, it’s "bad" for a heavily indebted government facing rising debt costs and for borrowers who could see higher loan rates dampen growth. Given Japan’s fiscal fragility and sensitivity to global market dynamics, the negatives (especially debt-servicing pressures) may outweigh the positives in the short term unless economic growth accelerates significantly. The BoJ’s ability to manage this transition will be critical.