TOKYO, Nov 22 (Reuters) - Japan's 10-year government

bond yield retreated on Friday from a four-month high,

underpinned by the Bank of Japan's bond-buying operation.

The 10-year JGB yield fell 1.5 basis points

(bps) to 1.08%. It had hit 1.095% in the previous session, its

highest since July 25.

The five-year yield fell 0.5 bp to 0.74%.

"The BOJ's bond buying operations supported the retreat in

yields," said Gen Taniguchi, market analyst at Mizuho

Securities.

The BOJ conducted its regular bond buying operation earlier

in the day, offering to buy bonds with maturities from one year

to more than 25 years.

The yield on two-year JGBs, which is the most

sensitive to the BOJ's policy, rose 1 bp to 0.585%.

Japan's core inflation in October held above the central

bank's 2% target and a key index stripping away the effect of

fuel accelerated, data showed, keeping pressure on the central

bank to raise its still-low interest rates.

Overnight index swap (OIS) indicated a 57.6% chance of the

BOJ raising rates to 0.5% in December, as of 0528 GMT.

Over half of economists surveyed by Reuters said the BOJ

will raise interest rates again at its December meeting as a

strengthening economy and concerns over the depreciating yen

prompt policymakers to act.

The 20-year JGB yield fell 1 bp to 1.89%.

The 30-year JGB yield rose 0.5 bp to 2.285%.

The 40-year JGB yield was flat at 2.615%.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)