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Japan rate hike expectations lift 2-year bond yields above zero

Swaps price in end to BOJ's negative rate policy next spring

The Bank of Japan's  headquarters in Tokyo. Ending negative interest rates would have far-reaching effects on Japan's economy. (Photo by Rie Ishii)

TOKYO -- The yield on two-year Japanese government bonds turned positive for the first time in seven years on Wednesday, in a sign that traders anticipate an end to the Bank of Japan's negative interest rate policy.

Also on Wednesday, the benchmark 10-year JGB yield reached 0.48%, near the top of the wider band set by the central bank in its surprise policy shift on Tuesday.

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