TOKYO, June 19 (Reuters) - Long-dated Japanese

government bond yields rose on Wednesday and futures declined,

resisting pressure from a sharp drop in U.S. bond yields

overnight, as investors positioned for tighter local monetary

policy.

The 30-year JGB yield rose 2.5 basis points

(bps) to 2.170%, and the 20-year yield added 2

bps to 1.805%, as of 0255 GMT.

The 10-year yield was flat at 0.94%, but

10-year JGB futures fell 0.04 yen to 143.91 yen.

Bank of Japan Governor Kazuo Ueda told parliament on Tuesday

that an interest rate rise next month was "certainly possible",

depending on incoming economic data.

Expectations had risen that the central bank would forgo a

hike in July after announcing last week that it would outline a

reduction of its bond purchase programme at the meeting, on the

assumption that doing both at the same risked upending markets.

"I get the feeling that the market is being spun in circles

by what the BOJ is doing," Shoki Omori, chief Japan desk

strategist at Mizuho Securities said.

And while Ueda's hawkish message has trumped the overnight

slide in U.S. yields, Japan's benchmark yield should fall if

expectations for Federal Reserve rate cuts build, Omori said.

A 10-year JGB yield of 0.9% "is about the right level", he

said.

The 10-year U.S. Treasury yield dropped as much

as 7 bps to 4.2% on Tuesday after a weak reading for retail

sales. The Treasury market is closed on Wednesday for a U.S.

public holiday.

Meanwhile, Japan's five-year bond yield was

flat at 0.51% on Wednesday. Two-year JGBs had yet

to trade on the day.

(Reporting by Kevin Buckland; Editing by Mrigank Dhaniwala)