TOKYO: Japanese government bond yields jumped on Thursday as comments from the Bank of Japan chief raised bets of an early rate hike.

The five-year yield rose to 0.75%, its highest level since June 2009, and was last up 3.5 basis points (bps) at 0.745%.

The two-year JGB yield rose 2.5 bps to 0.575.

The 10-year JGB yield rose 3 bps to 1.095%, its highest since July 25.

BOJ Governor Kazuo Ueda said there is still a month to go till the next policy meeting and there will be more information available by then.

The comments suggested a rate hike as early as next month and lifted yields, said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities.

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Overnight index swap (OIS) rates indicated a 55% chance of the BOJ raising rates to 0.5% in December as of 0716 GMT.

The yield also rose as the market was cautious ahead of a meeting of JGB primary dealers next week, where the ministry may hint at a possible increase in the sale of bonds with mid-term maturities, said Den.

The 20-year JGB yield rose 1.5 bps to 1.9%.

The 30-year JGB yield fell 0.5 bp to 2.28%.