TOKYO, Nov 20 (Reuters) - Japanese government bonds

(JGBs) continued their slide on Thursday, sending benchmark

yields to a 17-year high, as concerns mounted over the nation's

finances and the yen's depreciation.

The 10-year JGB yield climbed 3 basis points

to 1.795%, briefly hitting 1.8% earlier in the session, its

highest level since June 2008.

A government ruling-party panel proposed on Tuesday

compiling a supplementary budget exceeding 25 trillion yen

($159.34 billion) to fund Prime Minister Sanae Takaichi's

stimulus plan. That would be much larger than the previous

year's extra budget of 13.9 trillion yen.

The yen traded near a 10-month low against the dollar and a

record low versus the euro.

"The 10-year yield rose this morning as a weak yen raised

expectations for an earlier interest rate hike by the Bank of

Japan," said Katsutoshi Inadome, a senior strategist at Sumitomo

Mitsui Trust Asset Management.

"This means that yields across the curve are under upward

pressure, with super-long yields on track to increase further on

concerns about the country's worsening fiscal health," he

added.

Japan's government will include temporary payouts to

families with children in a planned stimulus package that will

likely exceed 20 trillion yen, the Asahi newspaper reported on

Thursday.

The two-year JGB yield rose 2.5 basis points

to 0.95%. The five-year yield rose 4 basis points

to 1.300%.

($1 = 156.9000 yen)