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

yields rose on Friday, as a weak yen raised bets for a Bank of

Japan rate hike, while a hawkish turn by the U.S. Federal

Reserve chief hurt sentiment.

The 10-year JGB yield touched 1.08%, its

highest level since July 25, and was last up 1.5 basis points

(bps) at 1.075%.

The five-year yield rose 1.5 bps to 0.705%,

hovering near its highest level since November 2009, despite

firm demand at an auction for bonds of the same maturity.

"Market sentiment was weak, as the weaker yen boosted bets

for a BOJ rate hike, while (Fed Chair Jerome) Powell's comments

also weighed," said Miki Den, senior Japan rate strategist at

SMBC Nikko Securities.

Overnight Index Swap (OIS) rates indicated a 54.45% chance

of the BOJ raising rates to 0.5% in December.

U.S. Treasury yields across most maturities rose overnight

after Powell said the central bank does not need to rush cutting

interest rates amid a stable labour market and stickier

inflation.

The higher yields pressured the yen. The Japanese currency

was last down 0.05% at 156.335 per dollar, nearing a

territory that had triggered intervention from Japanese

authorities in the past.

The yen has fallen some 11% since its September peak and

weakened past the 156 per dollar level for the first time since

July in the previous session.

Japan's two-year JGB yield, most sensitive to

a BOJ policy shift, rose 2.5 bps to 0.555%, hovering near its

highest since December 2008.

The 20-year JGB yield rose 0.5 bp to 1.895%.

The 30-year JGB yield was flat at 2.3%.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)