Japan's 10-year government bond yield rose 8 basis points to 3.055% on Thursday, reaching its highest level since August 1996. This followed a surge in U.S. Treasury yields, driven by a rebound in oil prices, stronger-than-expected U.S. PMI data, and weak demand for a $70 billion 5-year U.S. Treasury auction, all of which exacerbated market concerns about inflationary pressures. The weakening yen also contributed to inflation worries.