The Marunouchi business district of Tokyo. Upward pressure on Japanese government bond yields is building as oil prices remain high. | BLOOMBERG

Japan’s 20-year government bond yield breached its January peak to touch the highest level since 1997, as elevated energy prices add to inflation pressure.

The rate advanced 5 basis points to 3.495%, surpassing the previous high of 3.46% set on Jan. 20. The 10-year and 30-year yields also rose 5 basis points to 2.59% and 3.86%, respectively.

Upward pressure on Japanese government bond (JGB) yields is building as oil prices remain elevated after the U.S. and Iran rejected each other’s proposals to end the conflict, dimming prospects for a near-term resolution. Meanwhile, Treasury yields have also climbed after U.S. inflation accelerated, prompting traders to increase bets on future Federal Reserve rate hikes, while long-end U.K.…