TOKYO, March 19 (Reuters) - Japan's 10-year government

bond yield rose on Tuesday, as investors braced for the Bank of

Japan's (BOJ) decision to exit from ultra-loose monetary

settings as the central bank concludes its two-day meeting later

in the day.

The 10-year JGB yield rose 1 basis point (bp)

to 0.765%. The two-year government bond yield,

which is highly sensitive to the policy shift, rose 1 bp to

0.19%.

The BOJ is expected to end its negative rate policy and

ditch its yield curve control, which the central bank uses to

control moves of the 10-year government bond yields.

The BOJ will likely set the overnight call rate its new

target and guide it in a range of 0-0.1% by paying 0.1% interest

on excess reserves financial institutions park with the central

bank.