JGB 2-yr yield hits 3-1/2-yr low, BOJ eyed

TOKYO, July 10 (Reuters) - The two-year Japanese government bond yield fell to its lowest level in 3-½ years on Friday on growing speculation that the Bank of Japan will extend its corporate finance support measures beyond September at its policy meeting next week.

The two-year JGB yield fell 1.5 basis points to 0.225 percent JP5YTN=JBTC, the lowest since November 2005. (Reporting by Satomi Noguchi)