JGB yields rise after local media report BOJ chief signals scope for early hike

By Junko Fujita

TOKYO, Feb 26 (Reuters) - Japanese government bond (JGB) yields climbed across the curve on Thursday after comments in local media from Bank of Japan Governor Kazuo Ueda fanned expectations of an early interest rate hike.

Ueda said the central bank will scrutinise data at its March and April meetings in deciding whether to raise interest rates, the Yomiuri newspaper reported on Thursday, leaving open the possibility of a near-term rate hike.

The benchmark 10-year JGB yield JP10YTN=JBTC rose 3 basis points (bps) to 2.165%.

The two-year yield JP2YTN=JBTC climbed 3 bps to 1.245% and the five-year yield JP5YTN=JBTC rose 3.5 bps to 1.615%.

The report came a day after the nomination of two academics seen as dovish to the central bank's board steepened the yield curve, with longer-ends jumping at the fastest pace in a month.

"The BOJ board can make the policy decision in March with the current board member," said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities.

"Those who scooped up the shorter-dated bonds in the previous session might be selling them today," he said.

The market awaited remarks, due later in the day, from a hawkish board member of the Bank of Japan.

BOJ board member Hajime Takata is scheduled to speak at 0130 GMT in Kyoto during a meeting with business leaders.

Takata, considered one of the hawkish members of the BOJ board, was one of the two members who unsuccessfully proposed to push rates to 0.75% in October.