Japanese government bonds recovered slightly on Friday, after a volatile week that saw fiscal and inflation concerns drive super-long yields to record highs.

Japan's bond yield surge hints at global market risks. See how it impacts U.S. Treasuries, the yen, and top investments like Toyota and Sony.

Treasury yield has grabbed the lion’s share of attention lately when it comes to signaling how the U.S. fiscal outlook is rattling investors. Yet there’s another less-talked-about factor weighing on sentiment that is coming from overseas: the tumultuous rise in the bond yields of Japan.