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SINGAPORE, April 27 (Reuters) - Yields on longer term Japanese government bonds rose on Wednesday, even as investors awaited the outcome of a two-day Bank of Japan policy meeting with a near certainty that the super dovish settings won't be changed.
Shorter term yields were however anchored after the BOJ on Tuesday extended its offer to buy unlimited amounts of 10-year JGBs by two more days, sending their benchmark yields to the lowest in more than a week.
Yields on 10-year JGBs hit 0.225% in early trades, levels last seen on April 8, before settling back at 0.245% which is close to the top of the policy band.
The rise in yields was against the backdrop of a broad selloff in global stock markets, driven by growth worries and fresh concerns triggered by news of Russia cutting gas supplies to Eastern Europe.
Benchmark 10-year JGB futures fell 0.01 point to 149.31, while the two-year JGB yield was flat at -0.060%.
The 20-year JGB yield opened around 0.745% and then inched up to 0.76%.
Speculation has been rife the BOJ could allow long-term rates to rise more or tweak its policy guidance to defend a falling yen, as some lawmakers fret further falls in the currency could do more harm than good to the economy by inflating import costs.
But with inflation modest compared with other nations and the economy still operating below pre-pandemic levels, the BOJ is in no rush to increase borrowing costs or modify a pledge to keep rates at current or lower levels, sources familiar with its thinking have said.
The two-day BOJ meeting ends on Thursday. (Reporting by Vidya Ranganathan in Singapore; editing by Uttaresh.V)