Japan’s 10-year government bond yield fell to around 2.96% on Thursday, retreating from 30-year highs as a sharp yen rally reduced pressure on the Bank of Japan (BOJ, Japan’s central bank) to tighten policy aggressively. Japanese yields also followed U.S. Treasury yields lower, while oil prices halted their rally after President Donald Trump said the latest attacks on Iran would be short-lived, easing inflation concerns. The pullback came as BOJ board member Hajime Takata raised the possibility of outsized or back-to-back rate increases to contain rising inflationary pressures. BOJ Governor Kazuo Ueda said policymakers should pay greater attention to upside price risks, signaling that a rate hike is likely later this month.