TOKYO — Japanese government bond yields rose Wednesday, reflecting growing market conviction that the Bank of Japan will tighten policy in the near term.

The benchmark 10-year JGB yield climbed 1.5 basis points to 2.820 percent. The 5-year yield also rose 1.5 basis points to a record high of 2.100 percent. The 2-year JGB yield, the tenor most sensitive to BOJ policy signals, gained two basis points to 1.63 percent — its highest level since May 1995. Tokyo Tanshi data shows traders now assign a 67 percent probability to a September BOJ rate hike.

The move higher in yields follows renewed inflation concerns driven partly by rising crude oil prices. Brent crude futures settled at $88.91 a barrel, up 1.4 percent. U.S. crude gained 1.3 percent to $83.20.

Geopolitical tensions added fuel to oil's advance. Iran's top security official said Tuesday the Strait of Hormuz will remain closed unless the United States meets Iran's conditions for ending regional conflicts, including the release of frozen assets. The United States and Yemen's Iran-aligned Houthis separately reported shipping attacks Tuesday.

Despite higher domestic yields, the yen has found little support. Keisuke Tsuruta, senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities, said rising U.S. long-term yields, firmer crude oil futures and a stronger dollar are the dominant forces — outweighing the theoretical lift the yen would normally draw from a widening rate differential in Japan's favor.

ANZ Head of FX Research Mahjabeen Zaman has discussed efforts to shore up the currency, though external headwinds have so far overwhelmed those moves.

Treasury Secretary Scott Bessent has said rising Japanese bond yields contribute to higher U.S. government borrowing costs. A weaker yen strengthens the dollar, disadvantaging U.S. exporters while giving Japanese exporters a competitive edge in the American market.

Wednesday's U.S. Consumer Price Index reading will serve as a key swing factor for the dollar's trajectory and global bond yields, with direct implications for the external pressures bearing on the yen. Higher long-end JGB yields also reflect domestic inflation concerns and Japan's fiscal outlook.