TOKYO, Sept 12 (Reuters) -

Shorter-dated Japanese government bonds' yields rose, while

the longest-term yields fell on Friday, extending recent moves

as traders head into a long weekend that is likely to see the

emergence of more candidates in the race to be prime minister.

The 30-year JGB yield sank 1.5 basis points

to 3.21%, a fourth straight day of decline since hitting a

record 3.285% on Monday.

Bond yields fall when prices rise.

"Conditions in the super-long sector have been improving

gradually, with a cheapening of the bonds drawing dip buyers,"

said Naomi Muguruma, chief bond strategist, Mitsubishi UFJ

Morgan Stanley Securities.

"The yield level is attractive for international investors

as well."

By contrast, the five-year yield climbed 1.5

bps to 1.135%, a fourth straight gain after dipping to a

multi-week low on Tuesday.

The 10-year yield rose 1.5 bps to 1.59%, a

third session of gains following its drop to its own multi-week

low.

The two-year JGB hadn't traded as of 0510 GMT,

while the 20-year yield was flat at 2.645%.

Short-term JGB yields have climbed off lows as accelerating

inflation and overall hawkish rhetoric from Bank of Japan

officials recently keep bets alive for a near-term resumption of

interest rate hikes.

Market-implied odds of a quarter-point increase by year-end

stand at about 50%, although no change is widely expected at the

meeting running Thursday and Friday of next week.

Meanwhile, 30-year yields peaked amid simmering worries over

Japan's finances after fiscally hawkish Prime Minister Shigeru

Ishiba announced plans to step down on Sunday.

Among the leading candidates to replace him is Sanae

Takaichi, who espouses loose monetary policy and increased

fiscal spending. Takaichi has not yet declared her intention to

seek the premiership.

Another likely frontrunner, who also hasn't declared yet, is

Farm Minister Shinjiro Koizumi, seen as the continuity

candidate.

Updates on their plans could well emerge over Japan's

three-day weekend, Muguruma said, with markets shut Monday for a

public holiday.