Japan’s 10-year government bond yield rose to around 2.88% on Friday, ending a two-day decline as US Treasury yields rebounded. Earlier in the week, global bond yields fell after the US Treasury Department announced larger debt buybacks to contain borrowing costs. Secretary Scott Bessent said accelerated buybacks could exceed the announced $4 billion per issue and pointed to an upcoming long-term fiscal plan, though concerns remain that the borrowing-cost relief may be temporary. Japan’s inflation rate accelerated for a second consecutive month, strengthening the case for a near-term Bank of Japan interest rate hike. Markets are speculating about a possible move in September, while Governor Kazuo Ueda has indicated that authorities could begin normalizing policy at a faster pace.