TOKYO, Feb 7 (Reuters) - Japan's government bond yields

hit fresh multi-year highs on Friday on bets that the Bank of

Japan (BOJ) may raise interest rates earlier than the market had

expected.

The 10-year JGB yield rose 4 basis points

(bps) to 1.3%, its highest since April 2011. The two-year JGB

yield rose 3.5 bps to 0.795%, its highest since

October 2008.

"The yields rose on bets for the BOJ's rate hike, which were

underpinned by comments from BOJ's board member," said Miki Den,

senior Japan rate strategist at SMBC Nikko Securities.

BOJ's hawkish board member Naoki Tamura said on Thursday

that the central bank must raise rates to at least 1% by the

second half of the fiscal year beginning in April.

That is a faster-than-expected rate hike pace. After the BOJ

raised interest rates last month to 0.5%, some market players

see the central bank will raise the rate one more time to 0.75%

by December.

Swap rate shows about a 80% chance of the BOJ raising rates

by 25 bps to 0.75% at its July meeting.

Den said a weak outcome of the BOJ's bond-buying operation

earlier in the day also dented sentiment, as stronger demand to

sell bonds to the BOJ signalled fears for the further rate hike.

The BOJ offered to buy bonds with maturities ranging from

one to 10 years in its regular operation.

The five-year yield rose 5 bps to 0.985%, its

highest level since October 2008.

The 20-year JGB yield rose 2.5 bps to 1.97%

and the 30-year JGB yield rose 2.5 bps to 2.285%.