TOKYO, July 29 (Reuters) - Japanese government bond (JGB)

yields mostly fell on Wednesday, tracking a decline in U.S.

Treasury yields overnight as investors awaited the Federal

Reserve's policy decision and weighed Middle East risks for oil

prices and inflation.

Here are a few details:

* The benchmark 10-year JGB yield fell 1.5

basis points (bps) to 2.760%. Yields move inversely to bond

prices.

* "AI- and semiconductor-related shares continued to fall in

overseas markets yesterday. If risk-off sentiment intensifies

today, pressure for a twist steepening of the JGB yield curve is

likely to build, as it did yesterday," Keisuke Tsuruta, senior

bond strategist at Mitsubishi UFJ Morgan Stanley Securities,

said in a note.

* U.S. Treasury yields fell overnight as oil prices

continued to ease on hopes for a lasting resolution to the

U.S.-Iran conflict.

* Traders were also awaiting the Fed's interest rate

decision on Wednesday, with markets pricing in a 33% chance of a

25-basis-point hike.

* The U.S. military said on Tuesday it intercepted multiple

ballistic missiles launched by Iran towards U.S. forces in the

Middle East. Oil prices rose more than $2 a barrel on Wednesday

on shrinking U.S. crude inventories.

* The two-year yield, the most sensitive to

Bank of Japan policy rates, fell 2.5 bps to 1.465%. The

five-year yield fell 2.5 bps to 1.980%.

* Among longer-dated maturities, the 20-year JGB yield

slid 1 bp to 3.655%. The 30-year yield

sank 0.5 bp to 3.975%. The yield on the 40-year

JGB, Japan's longest tenor, rose 0.5 bp to

4.035%.

* The BOJ will hold a two-day policy meeting from Thursday.

The central bank is expected to keep interest rates steady but

leave scope for further hikes through hawkish communication,

while likely remaining ambiguous on the pace and timing of

future increases.

(Reporting by Satoshi Sugiyama; Editing by Subhranshu Sahu)