Japan’s 10-year government bond yield climbed to around 3.06% on Thursday, reaching its highest level since August 1996 and tracking a surge in US Treasury yields as strong US private-sector activity data reinforced expectations for further Federal Reserve rate hikes. A weak auction of five-year Treasury notes also intensified the global bond selloff. Meanwhile, uncertainty surrounding US-Iran negotiations kept oil prices elevated, adding to inflationary pressures. In Japan, S&P Global data showed manufacturing growth slowed to a seven-month low in September, amid softer increases in output and new orders. Last week, the Bank of Japan raised interest rates in a widely anticipated move, with two officials dissenting. Governor Kazuo Ueda said the central bank remains committed to raising rates and adjusting the degree of monetary accommodation in response to changing economic conditions.