TOKYO, Dec 9 (Reuters) - Japanese government bond (JGB)

yields declined on Monday, tracking U.S. Treasury yields, while

investors sought more clues on whether the Bank of Japan will

raise interest rates at its monetary policy meeting next week.

U.S. Treasury yields slid to a six-week low on Friday after the

release of November payrolls data, as investors considered the

numbers as a green light to one more rate cut by the Federal

Reserve at its Dec. 17-18 meeting.

The 10-year JGB yield touched a one-month low

of 1.03% and was last down 1 basis point (bp) at 1.04%, while

10-year JGB futures rose 0.15 points to 143.26 yen.

With Japan's central bank set to meet on Dec. 18-19,

investors were also keeping an eye out for a clearer indication

of its interest rate path.

Market expectations have been volatile after media reports last

week suggested the BOJ may stand pat, while normally dovish

board member Toyoaki Nakamura said he was "not opposed to rate

hikes".

Analysts at Mizuho Securities' fixed income department

expect the seemingly inconsistent communications are part of a

strategy to give the central bank flexibility.

"We think the Bank is simply taking a balanced approach that

assumes a January rate hike but keeps open the option of a

December hike in the event of a sharp decline in the yen," Chief

Bond Strategist Noriatsu Tanji and Market Analyst Yurie Suzuki

wrote in a report on Friday.

Markets currently have an about 30% probability factored in

for a rate increase in December.

The two-year JGB yield, which corresponds more

closely with monetary policy expectations, fell 1.5 bps to

0.57%, its lowest since Nov. 21.

The five-year yield slipped 1 bp to 0.71%.

The 20-year JGB yield and 30-year JGB yield

both ticked down 1 bp to 1.845% and 2.25%,

respectively.

(Reporting by Brigid Riley; Editing by Varun H K)