TOKYO, July 30 (Reuters) - Japanese government bond

yields ticked down on Tuesday, a day before crucial policy

decisions by both the Bank of Japan and U.S. Federal Reserve

that will determine the near-term path for debt markets.

The 10-year JGB yield fell 2.5 basis points

(bps) to 1% as of 0441 GMT, the lowest level since June 26,

tracking an overnight decline in U.S. Treasury yields.

Benchmark 10-year JGB futures rose 0.25 yen to

143.35 yen, set for the highest close in two weeks.

U.S. 10-year Treasury yield stood at 4.18% by

0515 GMT, little changed from the New York close after dipping

to as low as 4.151% on Monday.

Investors expect the Fed to leave interest rates unchanged

on Wednesday, but signal the start of its rate-cutting cycle in

September.

Meanwhile, the BOJ has promised to detail plans to taper its

huge bond buying on Wednesday, while also debating the timing of

its next rate hike, following the first since 2007 in March.

The BOJ will decide on a quantitative tightening plan that

will likely halve monthly bond buying in 1-1/2 to two years'

time, Reuters has reported - a pace roughly in line with market

forecasts.

More than three-quarters of economists polled by Reuters

expect the BOJ to stand pat on interest rates, whereas money

markets are pricing in a 64% chance of a 10 bps hike.

Mizuho Securities strategist Shoki Omori says market pricing

is too aggressive, forecasting no rate hike on Wednesday and a

terminal rate of 50 bps for Japan's key rate in about two years

from now.

"If the terminal rate is 50 bps, then the 10-year JGB yield

is way too high currently," Omori said.

"We're going to see fluctuations over the next few days, but

over the course of August, the 10-year yield is going to grind

lower," stabilizing at around 0.9%, he said.

On Tuesday, The two-year JGB yield and

five-year yield each fell 1.5 bps, to 0.375% and

0.585% respectively.

The 20-year yield lost 1 bp to 1.785%.

The 30-year yield was flat at 2.115%.

(Reporting by Kevin Buckland; Editing by Varun H K)