TOKYO, June 23 (Reuters) - Japanese government bond

(JGB) prices slid on Monday, as concerns about the inflationary

impact of higher oil prices reduced the appeal of coupon-bearing

debt.

Those worries overpowered demand for JGBs as a safe haven,

despite the nervous wait in the markets for Iran's response to

U.S. bomb strikes on its nuclear facilities during the weekend.

The 10-year JGB yield rose 2.5 basis points

(bps) to 1.42%, while benchmark 10-year JGB futures

fell 0.26 yen to 139.17 yen. Bond yields rise when prices fall.

The five-year yield jumped 3 bps to 0.98% and

the two-year yield added 1.5 bps to 0.735%.

The 20-year JGB yield, however, was flat at

2.355%, and earlier edged down to 2.34% for the first time in

almost two weeks, ahead of an auction of the securities on

Tuesday.

Mizuho analyst Gen Taniguchi said in a research note that

the 20-year bond sale could see demand due to the more muted

sensitivity to oil prices in the longer tenors, and a finance

ministry plan to reduce issuance of the longest-dated JGBs to

improve the supply-demand balance.

The 30-year and 40-year JGBs

had not traded as of 0328 GMT.