Japan's overnight lending rates turned positive for the first time in eight years on Thursday, after the Bank of Japan (BOJ) ended its negative rate policy on Tuesday.

The overnight lending rates between financial institutions were traded at around 0.075% and were quoted at as high as 0.077%, according to Japan's major money-market brokers.

The market was closed on Wednesday for a public holiday.

The BOJ on Tuesday ended eight years of negative interest rates and other remnants of its unorthodox policy, ushering in a new era of monetary policy.

The central bank set the overnight call rate as its new policy rate and decided to guide it in a range of 0-0.1%, partly by paying 0.1% interest on deposits of financial institutions, which can earn the difference provided they borrow below 0.1%.

Lending rates quoted on Thursday will be the peak until the BOJ raises rates further, analysts said, given commissions institutions have to pay to brokers.

Japanese government bond (JGB) yields also rose as the market priced in further interest hikes, Keiksuke Tsuruta, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, said.

The two-year JGB yield, highly sensitive to the BOJ's new rate policy, rose 2.5 basis points (bps) to 0.195% and the five-year JGB yield jumped 3 bps to 0.385%.

The 10-year JGB yield rose 1.5 bps to 0.74%.

The yields on longer-ended notes reversed course to rise, with the 20-year JGB yield edging up 1 bp to 1.505% and the 30-year JGB yield inching up 0.5 bp to 1.805%. (Reporting by Junko Fujita; Editing by Mrigank Dhaniwala)