TOKYO, April 28 (Reuters) - Yields on benchmark Japanese

government bonds edged towards a 29-year high on Tuesday as

investors awaited a policy decision from the central bank and

signals for future rate hikes.

The benchmark 10-year JGB yield rose 0.5

basis point (bp) to 2.475% in early trading, closing in on the

2.49% level hit earlier this month that was the highest since

June 1997. Yields move inversely to bond prices.

At the conclusion of its two-day policy meeting on Tuesday,

the Bank of Japan is widely expected to keep its key rate at

0.75%. That puts the focus on the central bank's quarterly

outlook report and comments from Governor Kazuo Ueda for signs

of how the Middle East conflict may impact the rate-hike path.

(Reporting by Rocky Swift in Tokyo; Editing by Subhranshu Sahu)