TOKYO, Jan 27 (Reuters) - Japanese government bond (JGB)

yields fell on Monday, tracking a decline in U.S. Treasury

yields at the end of last week, with investors assessing the

outlook for further interest rate hikes in Japan this year.

The 10-year JGB yield was down 1.5 basis

points (bps) at 1.215%, while 10-year JGB futures rose

0.2 points to 140.87 yen.

On Friday, the Bank of Japan (BOJ) raised interest rates to

their highest since the 2008 global financial crisis, a move

that had been nearly fully priced by markets, and revised up its

inflation forecasts.

Further scope for the 10-year JGB yield to rise will depend

on market expectations regarding the pace and extent of future

rate hikes, but BOJ Governor Kazuo Ueda said that will be based

on how soon trend inflation sustainably hits the BOJ's target.

Economists at Moody's Analytics are among those who believe

the next hike may come in six months but highlight that will

depend on how the domestic and global outlook shapes up.

"The outlook is subject to significant policy uncertainty at

home and abroad. U.S. President Donald Trump has promised higher

tariffs, which would doubtless shake up global trade and supply

chains," they wrote in a client note.

Markets currently expect only another 25 bps of tightening

this year.

U.S. Treasury yields fell on Friday, weighed down by

weaker-than-expected economic data that backed expectations the

Federal Reserve will lower rates at least once this year.

On the super-long end, the 20-year JGB yield

and 30-year JGB yield both fell 1 bp, to 1.895%

and 2.26%, respectively.

The two-year JGB yield was also down 1 bp at

0.705%.

The five-year yield slid 2 bps to 0.885%.