TOKYO, July 31 (Reuters) - Japanese government bond

(JGB) yields jumped on Wednesday after reports that the Bank of

Japan (BOJ) was considering raising short-term interest rates at

the end of its two-day policy meeting later in the day.

The BOJ is considering raising short-term interest rates to

around 0.25% from the current 0-0.1%, the Jiji news agency

reported.

Several other reports, including from public broadcaster NHK

and the Nikkei newspaper, also said the Japanese central bank

would consider raising rates, citing unidentified sources.

"The market reacted to the reports. Until then, the market

was expecting the BOJ will not raise rates, which is why the

10-year yield fell yesterday," said Takahiro Otsuka, a senior

fixed income strategist at Mitsubishi UFJ Morgan Stanley

Securities.

"Whether the yield will rise further or not will depend on

the contents of the BOJ's outlook and comments from the BOJ

Governor (Kazuo) Ueda."

The 10-year JGB yield rose 6 basis points

(bps) to 1.055%, while the 2-year JGB yield rose 4

basis points (bps) to 0.44%, its highest since April 2009. The

five-year JGB yield rose 6.5 bps to 0.65%, its

highest since May 30.

The BOJ is also expected to detail plans to taper its huge

bond buying, a key move to draw a shape of the yield curve.

The market also expects that the bond-purchase tapering

plans are not going to give any negative surprises, and that

optimism sent the 10-year JGB yield to a more than one-month low

of 0.995% in the previous session.

In March, the BOJ ended its negative rate policy and set the

overnight call rate as its new policy rate and decided to guide

it in a range of 0-0.1%.

(Reporting by Junko Fujita; Editing by Tom Hogue and Subhranshu

Sahu)