TOKYO, Oct 18 (Reuters) - Japanese government bond (JGB)

yields rose on Friday, tracking U.S. Treasury yields higher,

while expectations for the Bank of Japan's (BOJ) policy

tightening loomed as the local currency weakened.

The 10-year JGB yield rose to as high as

0.975%, its highest level since Aug. 2, and was last up 1 basis

point (bp) at 0.97%.

The 10-year U.S. Treasury yields climbed on Thursday after

data pointed to an economy on solid footing, easing market

expectations for Federal Reserve aggressiveness in cutting

interest rates.

"JGB yields will follow U.S. yields as the market struggles

to find domestic catalysts until the Oct. 27 election," said

Miki Den, senior Japan rate strategist at SMBC Nikko Securities.

The expectations for the BOJ's interest increase loomed as

the yen weakened, said Den.

Japan's new prime minister Shigeru Ishiba has called a

general election on Oct. 27.

Japanese yen fell to 150 yen against the U.S. dollar for the

first time since Aug. 1 overnight after data showed U.S. retail

sales rose in September.

A weaker local currency raises import costs, which raises

prices in Japan.

Data showed on Friday Japan's core consumer price

index(CPI), which includes oil products but excludes fresh food

prices, rose 2.4% in September from a year earlier, compared

with a median market forecast for a 2.3% gain.

The two-year JGB yield rose 0.5 bp to 0.435%

and the five-year yield rose 0.5 bp to 0.59%.

The 20-year JGB yield rose 2 bps to 1.755%.

The 30-year JGB yield rose 1.5 bps to 2.15%

and the 40-year JGB yield rose 0.5 bp to 2.435%.