TOKYO, Nov 6 (Reuters) - Japanese government bond (JGB)

yields rose on Wednesday, with the two-year bond hitting a

16-year high, as markets focus rested on initial voting results

trickling in from the U.S. presidential election.

The 10-year JGB yield climbed 5 basis points

to a two-week high of 0.98%, tracking a rise in U.S. Treasury

yields, while the dollar added 1.37% to 154.67 yen

.

Global investors were increasingly pricing in a win for

Republican candidate Donald Trump, as the former president

appeared to be taking a lead in U.S. presidential elections,

although some battleground states had yet to post results.

"At some point you have to make up your mind and take

action. I think it's become easier to make a move under this

scenario of a Trump victory," said Katsutoshi Inadome, senior

strategist at Sumitomo Mitsui Trust Asset Management.

The market may experience some continued volatility going

ahead, however, before a definitive winner is declared, he

added.

Analysts believe Trump's policies on immigration, tax cuts

and tariffs would put upward pressure on inflation, and drive up

bond yields and the dollar, while Democrat Kamala Harris is seen

as the continuity candidate. Trump is seen as more positive for

stocks.

Meanwhile, investors will be watching the yen, with many

viewing the 160-per-dollar level as a possible push for the Bank

of Japan to consider hiking interest rates sooner.

The two-year JGB yield, which corresponds more

closely with monetary policy expectations, was up 2.5 bps at

0.475%, its highest since December 2008.

Benchmark 10-year JGB futures fell 0.5 point to

143.77 yen.

The 20-year JGB yield rose 3 bps to 1.805%,

while the 30-year JGB yield briefly ticked up 2.5

bps to 2.235%, its highest since Aug. 8.

The five-year yield rose 4 bps to a

three-month peak of 0.61%.

The 40-year JGB yield was up 2.5 bps to

2.58%.