TOKYO, Oct 15 (Reuters) - Japanese government bond (JGB)

yields rose on Tuesday to their highest levels in more than two

months, tracking a rise in U.S. Treasury yields during Asian

trading hours.

The benchmark 10-year Treasury yield climbed as high as

4.104% on Tuesday. The U.S. Treasury market was closed on Monday

for Columbus Day.

The 10-year JGB yield ticked up 2.5 basis

points (bps) to 0.97%, its highest since Aug. 2.

The two-year JGB yield rose 1 bp to 0.42% and

the five-year yield was up 1.5 bps at 0.59%, with

both hitting their highest levels since early August.

Meanwhile, investors were considering the possible impact a

softer yen could have on the Bank of Japan's (BOJ) near-term

policy as the currency weakened back towards the 150 per-dollar

level.

The yen last fetched 149.365 per dollar, having

touched a 2-1/2-month low of 149.98 on Monday when Japan was

closed for a holiday.

Market expectations for a rate hike have grown slightly in

recent weeks, as worries about the U.S. economic outlook faded

and the yen weakened.

But the yen would have to depreciate to 160 per dollar or

beyond to have a visible sway on the BOJ policy via inflation,

Mizuho Securities analysts said in a note.

"We find it difficult to envision the yen weakening that

far," they said.

Economists polled by Reuters earlier this month were nearly

split on the probability of another rate hike this year, with a

very slim majority calling for rates to remain unchanged until

next year.

The 20-year JGB yield was up 1.5 bps at 1.75%

after earlier touching its highest since Aug. 8.

The 30-year JGB yield was flat at 2.165%.

Benchmark 10-year JGB futures fell 0.22 point to

143.77 yen.

(Reporting by Brigid Riley; Editing by Subhranshu Sahu)