TOKYO, Oct 17 (Reuters) -

Japanese government bond yields were mixed on Thursday amid

a calendar light on fresh material, while investors assessed the

possible outlook for Japan's monetary policy.

The 10-year JGB yield rose 1 basis point to

0.96%, while 10-year JGB futures was down 0.13 points

to 143.88 yen.

The 30-year JGB yield slid 2 bps to 2.135%.

U.S. Treasury yields, which the JGB market tends to follow,

dipped on Wednesday ahead of data on consumer strength, but

ticked higher during Asian trading hours.

JGBs have largely mirrored the movement in U.S. Treasuries

this month, after the Bank of Japan signalled it was in no hurry

to raise interest rates again and Japan's new prime minister

said the economy is not ready for further rate hikes.

But the yen's slide back towards the 150-per-dollar level on

Thursday has had investors pondering if the currency could

impact the central bank's monetary policy outlook.

"If this trend continues, I think it will generate

speculation that the Bank of Japan and the government will have

to change their policy stances again," said Noriatsu Tanji,

chief bond strategist at Mizuho Securities.

Still, with current foreign exchange moves governed more by

U.S.-Japan rate differentials, Tanji, who expects the recent

rise in U.S. yields to be limited, said further declines in the

yen is unlikely.

The two-year JGB yield, which corresponds more

closely with monetary policy expectations, rose 1 bp to its

highest since Aug. 2 at 0.43%.

The five-year yield also ticked up 1 bp to

0.585%.

The 20-year JGB yield was flat at 1.735%.

The BOJ announced on Wednesday it will continue to carry out

the same measures laid out in 2022 regarding the Securities

Lending Facility for cheapest-to-deliver issues to ensure

stability in the market.

Japan's $9 trillion bond market is bracing for disruption as

a shortage of paper caused by the BOJ's massive buying is

expected to hit the settlement of derivatives used by investors

and the dealers who underwrite the nation's debt sales.

(Reporting by Brigid Riley; Editing by Varun H K)