TOKYO, May 12 (Reuters) - Japan's 10-year government

bond yield hit a 29-year high on Tuesday, despite a moderately

firm auction, as the market awaited comments from U.S. Treasury

Secretary Scott Bessent, who is visiting Tokyo.

The 10-year JGB yield rose 2.5 basis points

to 2.545%, its highest since June 1997. The five-year JGB yield

rose 2 bps to a record high of 1.925%.

The market weighed the possibility of Bessent urging Japan to

take measures to prevent a JGB selloff or renew his calls for

speedier rate hikes by the Bank of Japan as a way to support the

yen.

"The market is on guard around Bessent's comments that would

affect Japan's monetary policy and finance, as well as the

foreign exchange market," said Masayuki Koguchi, executive fund

manager at Mitsubishi UFJ Asset Management.

Bessent met his counterpart, Satsuki Katayama, earlier in

the day and is expected to meet Prime Minister Sanae Takaichi

before his three-day visit wraps up on Wednesday.

"The market will be alert until Bessent leaves Japan," said

Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust

Asset Management.

Earlier this year, Bessent told Japan that the country's rising

debt yields had triggered a triple selloff in the United States

and urged it to respond.

Japan's super-long bond yields hit a record high in January

on concerns about the government's aggressive spending.

On Tuesday, the 30-year yield jumped 5 bps to

3.81% as investors weigh an auction for the bonds with the same

maturity on Thursday, Inadome said. The 20-year bond yield

climbed 4 bps to 3.445%.