TOKYO, July 23 (Reuters) - Japan's 10-year government

bond yield rose to a near two-week high on Tuesday, tracking

U.S. Treasury yields higher overnight.

The 10-year JGB yield rose to as high as

1.065%, its highest level since July 11 and was last up 1 basis

point (bp) to 1.060%.

"The JGB yields rose to track U.S. Treasury yield higher but

also investors sold bonds after yields fell last week," said

Miki Den, senior Japan rate strategist at SMBC Nikko Securities.

The 10-year JGB yield fell to as low as 1.005% last week

amid growing expectations of a U.S. interest rate cut in

September.

Overnight U.S. Treasury yields inched higher, as markets

assessed the uncertainty surrounding the race for the White

House after President Joe Biden dropped his bid for reelection.

Comments from a senior official from Japan's ruling party on

Monday also prompted a bond selloff, said Takahiro Otsuka,

senior fixed income strategist at Mitsubishi UFJ Morgan Stanley

Securities.

The secretary-general of the Liberal Democratic Party

Toshimitsu Motegi was quoted as saying by local media that the

Bank of Japan (BOJ) should more clearly indicate its resolve to

normalise monetary policy, including through steady interest

rate hikes.

Motegi's comments came after Japan's Digital Minister Taro

Kono said last week in an interview with Bloomberg that the BOJ

needs to raise rates to support the yen.

The comments were made ahead of the BOJ's two-day policy

meeting that ends on July 31.

The five-year yield rose to as high as 0.605%,

its highest since July 2, and was last up 1 bp to 0.6%. The

two-year JGB yield rose 1.5 bps to 0.35%.

The 40-year JGB yield fell 0.5 bp to 2.41%

ahead of an auction for bonds with the same maturity on

Wednesday.

The 20-year JGB yield and the 30-year JGB

yield were flat at 1.855% and 2.17%,

respectively.

(Reporting by Junko Fujita; Editing by Janane Venkatraman

)