(Updates yield levels, adds auction result in bullet 4, analyst

comment in 6)

By Rocky Swift

TOKYO, June 30 (Reuters) - Japanese government bond (JGB)

yields rose for a second straight session on Tuesday as

inflation concerns and a soft yen weighed on sentiment.

Here are a few details:

* The benchmark 10-year JGB yield climbed 4.5

basis points (bps) to 2.675%, set for the highest closing level

since June 11. The 5-year yield added 1.5 bps to

1.885%. Yields move inversely to bond prices.

* U.S. Treasury yields edged higher overnight as crude

prices advanced amid Middle East tensions and ahead of key U.S.

jobs data. The yen fell to the 162-per-dollar level on Tuesday,

the weakest point since 1986.

* With the yen trading at a 40-year low, "concerns are

likely to grow over the risk of inflation exceeding expectations

due to the Bank of Japan's delay in raising interest rates

further," Hiroshi Watanabe, a senior economist at Sony Financial

Group, said in a note.

* The 2-year JGB rallied after an auction of the notes

showed an increase in demand compared to the previous sale in

May. The 2-year yield, the one most sensitive to

BOJ rates, slid 4 bps to 1.355%, extending its decline to four

days.

* Prime Minister Sanae Takaichi's administration appointed

Ayano Sato, seen as an advocate of loose monetary policy, as a

central bank board member on Tuesday.

* "The market is closely monitoring the relationship between

the government and the Bank of Japan," Keisuke Tsuruta, a senior

bond strategist at Mitsubishi UFJ Morgan Stanley Securities,

said in a note. "Against this backdrop, attention is focused on

what views Sato will express regarding further interest rate

hikes and expansionary fiscal policy."

* The yield on the 20-year JGB advanced 9 bps

to 3.640%, while the 30-year yield gained 11 bps

to 3.940%. The yield on the 40-year JGB, Japan's

longest tenor, increased 6.5 bps to 3.770%.

($1 = 162.2300 yen)