Japan's 10-year government bond yield climbed to around 2.99% on Friday, moving back toward 30-year highs and extending a rise previously reported as 7.5 basis points to 2.985% on Sept. 11. Higher U.S. Treasury yields, following a disappointing U.S. government bond buyback operation, added pressure to Japanese debt. U.S. producer inflation accelerated last month, while rising oil prices amid the unresolved U.S.-Iran war increased inflation concerns and strengthened expectations for a Federal Reserve rate hike next week. In Japan, producer inflation rose 7.6% in August, supporting expectations for a Bank of Japan rate hike this month. Sentiment among large manufacturers also improved sharply in the third quarter, reaching its strongest level since the fourth quarter of 2021, helped by government support measures. BOJ board member Kazuyuki Masu said earlier this week that the central bank will continue tightening policy and reduce monetary support as underlying inflation moves closer to its 2% target.