Pakistan, Aug. 15 -- Japanese government bonds fell on Friday, sending shorter-term yields to historic highs, as expectations firmed around a Bank of Japan interest rate hike next month.

The two-year yield, the one most sensitive to BOJ policy rates, added 0.5 basis point (bp) to 1.650%, the highest since May 1995. Yields move inversely to bond prices.

The five-year yield advanced 1.5 bps to a record high of 2.135%, extending its streak of gains to five sessions.

The benchmark 10-year JGB yield climbed 0.5 bp to 2.875%.

Three sources familiar with the BOJ's thinking said the central bank is set to raise interest rates as soon as September and is considering accelerating the pace of hikes thereafter.

"Speculation about an early intere...