Japanese government bond yields rose after sharp overnight gains in U.S. Treasuries, extending a multi-decade selloff that followed the Bank of Japan’s policy-rate increase from 1% to 1.25%. The 10-year JGB yield rose 3.5 basis points to 3.110%, after earlier reaching 3.075%, its highest level since August 1996; the two-year yield increased 2 basis points to 1.920% and the 40-year yield climbed 5.5 basis points to 4.255%. The 20-year and 30-year yields had previously reached 3.9% and 4.13%, respectively. Strong U.S. economic data, a 5.106% 10-year Treasury yield and a 66% futures-implied probability of another Federal Reserve hike in October kept pressure on crypto markets. Higher Japanese rates could make yen-funded carry trades less attractive and encourage domestic institutions to retain more capital at home, although the yen weakened after the BOJ decision and there was no clear disorderly unwind or large-scale overseas liquidation. Investors also monitored the Middle East conflict, a U.S.-China summit meeting and speculation that the BOJ could raise rates further to mitigate inflation risks.