TOKYO, July 16 (Reuters) - Japanese government bond (JGB)

yields rose on Thursday as escalating U.S.-Iran tensions drove

oil prices higher, fuelling inflation concerns and adding to

persistent worries about Japan's fiscal health.

Here are a few details:

* The benchmark 10-year JGB yield rose 0.5

basis point (bp) to 2.690%. Yields move inversely to bond

prices.

* Oil prices rose for a fourth consecutive session after a

new wave of U.S. strikes on Iranian military installations

fuelled fears of renewed full-scale conflict and supply

disruptions in the Strait of Hormuz.

* The 30-year yield added 5 bps

to 3.805%. The 20-year JGB yield climbed 1.5 bps

to 3.55%, pulling back from an earlier rise of 3 basis points.

* Japanese Prime Minister Sanae Takaichi said on Wednesday

that she saw ​no link between her government's draft economic

blueprint ‌and a recent rout in the JGB market.

* "The government has recently been taking steps to respond

to rising interest rates, but there still appears to be some

distance between the issues the market is concerned about and

the government's own perception of the situation," Keisuke

Tsuruta, senior bond strategist at Mitsubishi UFJ Morgan Stanley

Securities, said in a note.

* "Lingering concerns over fiscal expansion and increased

JGB issuance are likely to keep market participants cautious,"

Tsuruta added.

* The 2-year yield, which is most sensitive to

Bank of Japan policy rates, increased 0.5 bp to 1.435%. The

5-year yield rose 0.5 bp to 1.94%.

* U.S. Treasury yields declined overnight after data showed

the Producer Price Index for final demand dropped 0.3% last

month, below the estimate of economists.

* U.S. Federal Reserve Chairman Kevin Warsh brushed aside a

view that massive investment on AI is inflationary on Wednesday,

a day after saying the central bank had "no tolerance for

persistently elevated inflation."

* "This appeared to balance out the previous day's hawkish

testimony, and may also have somewhat tempered expectations for

an early rate hike," said Hiroshi Watanabe, chief economist at

Sony Financial Group.