The key yield on 10-year Japanese government bonds on Monday exceeded the upper limit of 0.50 percent set by the Bank of Japan for two consecutive sessions since the trading band was widened last month.
The move comes as many investors unloaded bonds amid views that the central bank could again widen the range of the benchmark yield at its two-day policy meeting starting Tuesday, in a further shift from its ultraloose monetary policy. Bond yields move inversely to prices.
The yield hit 0.510 percent at one point Monday, up 0.010 percentage point from its closing level on Friday. It briefly rose to 0.545 percent on Friday, its highest level since June 2015.
After the BOJ's latest decision, the benchmark yield is now allowed to move in a range of minus 0.50 percent and 0.50 percent, wider than the previous band of minus 0.25 percent and 0.25 percent. The move was widely perceived as an effective interest rate hike.