JGB sell-off deepens as more players bail out

TOKYO, April 25 (Reuters) - The sell-off in Japanese government bonds deepened on Friday, with futures sinking to a six-month low as more investors rushed to bail out of the market on rising expectations of an eventual Bank of Japan rate hike.

June 10-year futures 2JGBv1 plunged as low as 135.55, down 1.53 point, and the lead contract was on track for the biggest one-day drop since July 2003.

The two-year yield <JP2YTN=JBTC>, the most sensitive to the policy outlook, shot up 10 basis points to 0.820 percent as the market has swung around completely in just a few weeks to see a risk of higher rates later this year rather than a rate cut. (Reporting by Eric Burroughs)