Japan’s 10-year government bond yield rose to around 2.87% on Friday, reaching its highest level in three weeks and following the upward movement in US Treasury yields amid growing expectations of a more aggressive Federal Reserve tightening cycle. The increase followed stronger-than-expected US consumer inflation data and hawkish remarks from Fed officials. Meanwhile, the Bank of Japan is widely expected to raise interest rates next month and continue tightening monetary policy into next year. The BOJ’s latest Summary of Opinions revealed broad support among policymakers for further rate increases, as underlying inflation has reached levels generally consistent with its 2% price stability target. However, board member Toichiro Asada called for caution regarding the timing of additional hikes, pointing out that household consumption remains subdued and recent price increases have not necessarily been driven by strong demand.