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

bond yield touched a more-than 17-year high on Friday as a weak

yen raised bets that the Bank of Japan would hike interest

rates.

The 10-year JGB yield rose 1 basis point to

1.7%, its highest since July 2008.

Bond yields move inversely to prices.

"The weak yen stoked the speculation that the BOJ may raise

interest rates early," said Katsutoshi Inadome, senior

strategist at Sumitomo Mitsui Trust Asset Management.

The market saw the reversal of earlier bets that the BOJ may

delay interest rate hike after fiscal dove Sanae Takaichi won

the Liberal Democratic Party's leadership election.

The reversal came about on concerns that a weak yen

could boost import prices, accelerating inflation.

The five-year yield rose 0.5 bp to 1.24%, its

highest level since July 2008.

The two-year JGB yield was flat at 0.925%.

The 20-year JGB yield fell 1 bp to 2.705%.

The 30-year JGB yield was flat at 3.175%.

The 40-year JGBs have not been traded as of 0440 GMT.