TOKYO, Jan 13 (Reuters) - The yield on benchmark 10-year Japanese government rose above the Bank of Japan's new policy ceiling on Friday, reaching the highest in close to a decade, amid rising speculation the central bank could reduce stimulus as soon as next week.
The 10-year JGB yield rose 3 basis points to 0.530% as of 0024 GMT, the highest since June 2015.
The BOJ doubled the band that the 10-year yield can move in to 50 basis points either side of zero in a surprise decision last month. The next policy decision is due on Wednesday.
"The market is expecting at the next meeting that they will increase the band for the 10-year again," said Naka Matsuzawa, chief Japan macro strategist at Nomura.
"I think it's too early for the BOJ to give up. It still has ammunition to defend the 0.5% yield cap." (Reporting by Kevin Buckland; Editing by Christopher Cushing)
