TOKYO, March 19 (Reuters) - Japan's 10-year government bond yield rose on Tuesday, as investors braced for the Bank of Japan's (BOJ) decision to exit from ultra-loose monetary settings as the central bank concludes its two-day meeting later in the day.
The 10-year JGB yield rose 1 basis point (bp) to 0.765%. The two-year government bond yield, which is highly sensitive to the policy shift, rose 1 bp to 0.19%.
The BOJ is expected to end its negative rate policy and ditch its yield curve control, which the central bank uses to control moves of the 10-year government bond yields.
The BOJ will likely set the overnight call rate its new target and guide it in a range of 0-0.1% by paying 0.1% interest on excess reserves financial institutions park with the central bank.
(Reporting by Junko Fujita and Brigid Riley; Editing by Rashmi Aich)
