Japan's government bond selloff has pushed the 10-year JGB yield to 2.945%, its highest since September 1996 and close to 3%, while long-dated yields have also climbed sharply, with the 30-year around 3.92% and the 40-year about 4.24%. Investors are weighing stronger inflation, yen weakness, expectations for further Bank of Japan tightening, heavy bond issuance and political uncertainty including snap election developments. The volatility has also driven a surge in Japanese Government Bond futures trading on the Singapore Exchange, which offers investors an off-hours venue to hedge rate risk. Higher domestic yields are being watched globally because they could reduce Japanese demand for U.S. and European debt markets.