TOKYO, Oct 22 (Reuters) - Japanese government bond

yields rose on Tuesday, as investors sold bonds after U.S.

Treasury yields rose and the yen hit a near three-month low.

The 10-year JGB yield rose to as high as

0.985%, its highest since Aug. 2, and was last up 2 basis points

(bps) at 0.975%.

The five-year yield rose 2 bps to 0.595%. The

two-year JGB yield rose 1.5 bps to 0.445%.

"Investors sold JGBs as U.S. Treasury yields rose and the

yen weakened," said Keisuke Tsuruta, senior fixed income

strategist at Mitsubishi UFJ Morgan Stanley Securities.

The yield on the benchmark U.S. 10-year Treasury note

rose to as high as 4.22% in Asia trade, its highest

since July 26.

The rising yields weighed on the yen, which is

extremely sensitive to moves in Treasuries. The yen on Tuesday

touched a near three-month low of 151.1 per dollar.

The weaker yen raises import costs, which lifts prices in

Japan, driving expectations for the Bank of Japan's interest

rate increases.

The U.S. dollar clung to a two-and-a-half-month high on

Tuesday on expectations the Federal Reserve will take a measured

approach to interest rate cuts, while a close battle in the

upcoming U.S. election kept investors on edge.

Yields on Japan's longer-dated bonds also rose, with the

20-year JGB yield rising 2.5 bps to 1.775%. The

30-year JGB yield rose 3.5 bps to 2.2%.

The 40-year JGB yield rose 2 bps to 2.48%.