TOKYO, April 15 (Reuters) - Japanese government bond

yields fell from recent peaks on Monday as investors shifted

into the safest assets amid an escalation in tensions in the

Middle East.

The 10-year JGB yield declined 1 basis point

(bp) to 0.850% as of about 0500 GMT, retreating from the

five-month high of 0.860% reached at the end of last week. Bond

yields fall when prices rise.

The two- and five-year yield

also lost 1 bp each to 0.265% and 0.480%, respectively. The

two-year yield reached the highest since 2009 on Friday, while

the five-year yield touched the highest since 2011.

Longer-dated JGBs though were less affected, with the

20-year yield down 0.5 bp to 1.630% and the

30-year yield flat at 1.910%.

Iran launched an unprecedented direct attack on Israeli

territory over the weekend, a retaliatory strike that raised the

threat of a wider regional conflict, driving investors into

bonds, gold and other haven assets.

JGB yields had been rising over the past week primarily amid

a climb in U.S. Treasury yields as heated consumer inflation

data forced traders to push back bets on the timing of the first

rate cut by the Federal Reserve.

"Considering the excessive influence of U.S. interest rates

and geopolitical risks from the Middle East, it is currently

advisable to avoid JGBs in favor of a simple investment in

three-month U.S. dollar T-bills," said Shoki Omori, chief Japan

desk strategist at Mizuho Securities.