Higher Japanese government bond yields are making domestic assets more attractive to institutional investors and could reduce demand for U.S. Treasuries, Fitch Ratings and BlackRock said. The newly issued 10-year JGB yield briefly reached 2.935%, while the benchmark settled at 2.910%; an earlier market reading had briefly placed the 10-year yield above 3%, its highest level since September 1996. The 30-year JGB yield reached a record 4.18%. Global pressure came from higher U.S. Treasury yields, Brent crude above $101 a barrel, Middle East tensions, heavy corporate issuance and expectations that interest rates will remain higher for longer. A yen-hedged 10-year U.S. Treasury yielded about 2% for Japanese investors versus roughly 3% on a comparable JGB. Japan holds about $1.1 trillion in U.S. Treasuries, and BlackRock’s hypothetical 5% shift represents $55 billion, not a forecast of actual selling. Fitch does not expect broad liquidation or a JGB fire sale, while Japanese megabanks are cautiously rebuilding domestic holdings and life insurers are replacing older lower-coupon bonds with higher-coupon securities.