TOKYO, March 11 (Reuters) - Japanese government bond yields climbed on Monday as traders maintained a cautious stance following reports that the Bank of Japan is leaning toward exiting negative interest rates and considering an overhaul of its massive stimulus programme.
The benchmark 10-year JGB yield was 3 basis points (bps) higher at a one-month high of 0.760% in early trade, while 10-year JGB futures fell 0.14 yen to 146.11 yen.
A growing number of BOJ policymakers are warming up to the idea of ending negative interest rates this month on expectations of hefty pay hikes in this year's annual wage negotiations, four sources familiar with its thinking said.
Upon ending negative rates, the central bank is likely to overhaul its massive stimulus programme that consists of a bond yield control and purchases of riskier assets, the sources said.
Japan's Jiji news agency reported on Friday that the central bank is considering replacing yield curve control (YCC) with a new quantitative framework that will show in advance how much bonds it will buy in the future.
The five-year yield edged up to its highest level in four months at 0.40% before falling slightly to 0.390%.
The two-year JGB yield had yet to trade.
On the superlong end, the 20-year JGB yield climbed 4 bps to around a one-month high of 1.535%.
Earlier in the session, the 30-year JGB yield rose as much as 1.825%, its highest since Feb. 1, before easing to 1.815%.
(Reporting by Brigid Riley; Editing by Sherry Jacob-Phillips)
