TOKYO, July 27 (Reuters) - Shorter-dated Japanese government

bond yields fell on Monday, tracking a sharp drop in oil prices

as a pause in U.S. attacks on Iran fuelled hopes for a

diplomatic off-ramp and eased inflation fears.

Here are a few details:

* The two-year yield, which is most sensitive

to the Bank of Japan's policy rates, decreased 2.5 basis points

(bps) to 1.495%. The five-year yield fell 4.5 bps

to 2.000%. Yields move inversely to bond prices.

* Oil prices fell more than 5% after U.S. President Donald

Trump paused strikes on Iran after two weeks of attacks. Iran

will halt its own attacks as long as the U.S. does the same, a

senior Iranian official told Reuters on Sunday.

* "With excessive tensions easing over the weekend, the

market is expected to regain some calm for now," said Keisuke

Tsuruta, senior fixed income strategist at Mitsubishi UFJ Morgan

Stanley Securities, in a note.

* Other tenors were yet to be traded as of 0200 GMT.

* The Bank of Japan will hold a policy meeting, in tandem

with the Federal Reserve and the Bank of England this week. The

BOJ ⁠is likely to keep interest rates steady at 1% ​and maintain

its warning over the risk of inflation overshooting its 2%

target at a two-day meeting ending on Friday.

* The BOJ "won't necessarily raise rates (this week), but

might signal that they could be more activist," said Sally Auld,

chief economist at National Australia Bank, in a podcast.

(Reporting by Satoshi Sugiyama; Editing by Varun H K)