According to CoinMeta, affected by the selling of U.S. Treasuries, Japanese government bonds fell on Wednesday, following the overnight selling trend of U.S. Treasuries. U.S. inflation data exceeded expectations, exacerbating market bets that the Federal Reserve may need to take more aggressive interest rate hikes. The yield on 5-year Japanese government bonds rose by 9.5 basis points to 2.195%, and the yield on 10-year bonds rose by 10.5 basis points to 2.795%. The yield on 2-year bonds, which are more sensitive to monetary policy, rose by 8.5 basis points to 1.86%. U.S. Treasuries faced intense selling, with the yield on 2-year bonds soaring by 18 basis points to 4.74%, marking the largest one-day increase since April 2025. Federal Reserve officials warned that more aggressive interest rate hikes may be necessary to curb inflation. shinichiro kadota, head of Barclays' Japan foreign exchange and interest rates strategy, stated that the decline in Japanese bond yields was a certain degree of overreaction, and expected that yields still have room to recover further.