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TOKYO: Yields on shorter ended Japanese government bonds (JGBs) rose on Friday as the market awaited the Bank of Japan’s policy decision later in the day.

The BOJ is expected to raise interest rates by 25 basis points to 0.5% on Friday to levels unseen since the 2008 global financial crisis.

The two-year JGB yield rose 0.5 basis point to 0.7%.

The five-year yield rose 0.5 bp to 0.88%.

Japan’s shorter-dated bond yields rise as market braces for BOJ rate hike

The market has almost fully priced the BOJ’s rate hike, with swap rates indicating a 99.85% chance for the BOJ raising interest rates to 0.5% at Friday’s meeting.

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