Is it a sign of a full-fledged economic recovery or a looming catastrophe in the monetary making?

Recent spikes in Japan's long-term interest rate, represented by the 10-year government bond, have created a stir and roused a deep sense of alarm among investors and powerful politicians.

A confident Bank of Japan Gov. Haruhiko Kuroda fired his credit-easing "bazooka" in April by ordering his BOJ to start purchasing massive amounts of JGBs while pledging to push down the long-term rate, assuring the public that the strategy will pull the economy out of its long-running deflationary slump.