TOKYO, June 12 (Reuters) - Japanese government bond (JGB)

yields fell on Friday as inflation concerns eased on rising

hopes for peace in the Middle East.

Here are a few details:

* The benchmark 10-year JGB yield fell 4

basis points to 2.640%. Yields move inversely to bond prices.

* U.S. President Donald Trump on Thursday said Washington

and Tehran could sign a peace deal as soon as this weekend that

would reopen the Strait of Hormuz to shipping, but Iran

countered that it had not reached a final decision on an

agreement.

* Oil prices fell over $1 on Friday, extending losses from

the previous session.

* BOJ is widely expected to raise its policy rate to a

31-year high of 1%, and signal its readiness to keep pushing up

borrowing costs.

* Markets are awaiting comments from Bank of Japan Deputy

Governor Shinichi Uchida at the post-meeting briefing on June

16.

* Governor Kazuo Ueda is in hospital due to an infected

liver cyst and will miss the two-day meeting.

* The yields will likely rise even as Uchida issues comments

that signal a cautious stance for policy tightening, said Yuki

Kimura, a bond strategist at Okasan Securities.

* "Such a stance would drive concerns that the BOJ is behind

the curve in coping with inflation, and the yields on five- and

10-year bonds could lead the rises," said Kimura.

* If Uchida makes hawkish comments by highlighting concern

about inflation, the yields on two- and five-year bonds could

rise as that is a signal for further rate hikes, she said.

* On Friday, the 20-year JGB yield fell 5 bps

to 3.525% and the 30-year yield fell 6 bps to

3.810%.

* The five-year yield fell 2 bps to 1.905%.