TOKYO, Jan 24 (Reuters) - Yields on shorter ended

Japanese government bonds (JGBs) rose on Friday as the market

awaited the Bank of Japan's policy decision later in the day.

The BOJ is expected to raise interest rates by 25 basis

points to 0.5% on Friday to levels unseen since the 2008 global

financial crisis.

The two-year JGB yield rose 0.5 basis point to

0.7%. The five-year yield rose 0.5 bp to 0.88%.

The market has almost fully priced the BOJ's rate hike,

with swap rates indicating a 99.85% chance for the BOJ raising

interest rates to 0.5% at Friday's meeting.