Kerry Group: No need to worry about the rise in Japanese bond yields and the weakening of the yen.

The Carlyle Group stated that the rise in Japanese government bond yields combined with the weakening of the yen is a good sign for the Japanese economy to break free from decades of deflationary stagnation, although some critics disagree. Jason Thomas, global head of research and investment strategy at Carlyle Group, and his team pointed out in their annual outlook released on Tuesday that Japanese policymakers have been gradually raising interest rates while effectively suppressing the yen exchange rate; a more competitive exchange rate will increase domestic companies' profits. Thomas said, "For an economy that has finally escaped deflationary stagnation, there is nothing to worry about in normalizing interest rates. We must not misinterpret market signals." While the yen continues to depreciate, Japanese government bond yields have climbed to the highest levels in a generation, causing concern for some.