TOKYO, July 15 (Reuters) - The Japanese government bond

yield curve steepened on Wednesday, as shorter-dated yields

tracked overnight declines in U.S. Treasury yields, while

longer-dated yields rose amid revived fiscal and inflation

worries.

Here are a few details:

* The benchmark 10-year JGB yield fell 3

basis points to 2.675%.

* The two-year yield inched down 0.5 bp to

1.425%. The five-year yield fell 2 bps to 1.930%.

Yields move inversely to bond prices.

* U.S. Treasury yields declined on Tuesday after consumer

inflation slowed more than expected in June, dampening market

expectations for a near-term Federal Reserve rate hike.

* "Yields on longer-dated (Japanese) bonds rose because they

fell too much in the previous session, and the market revived

worries about inflation and fiscal concerns," said Katsutoshi

Inadome, senior strategist at Sumitomo Mitsui Trust Asset

Management.

* The yield on 20-year JGBs fell 16.5 bps in the previous

session following a stronger-than-expected auction for the bonds

with the same maturity.

* There was speculation that the Government Pension

Investment Fund (GPIF) may have bought some of the bonds to

support the auction, as bidders included a significant number of

unidentified buyers, which typically include pension funds,

Inadome said.

* The JGB market has lifted since last week after Finance

Minister Satsuki Katayama said Japan would look into the

possibility of changing the asset allocation of the nation's

giant state pension funds.

* On Wednesday, the 20-year JGB yield rose as

much as 4 bps to 3.535%. The 30-year yield was up

1.5 bps to 3.750%. The yield on the 40-year JGB

rose 1 bp to 3.76%.