TOKYO, June 10 (Reuters) - Japanese government bond (JGB)

yields rose on Wednesday as signs of rising inflation cast a

cloud over an impending sale of long-term debt.

Here are a few details:

* The benchmark 10-year JGB yield climbed 3

basis points (bps) to 2.695%. Yields move inversely to bond

prices.

* Data on Wednesday showed Japan's producer price index

(CGPI) rose 6.3% year-on-year in May, exceeding forecasts and

underscoring the impact of higher energy costs linked to the

Middle East conflict.

* Later in the session, the Ministry of Finance will sell

about 600 billion yen ($3.74 billion) of 30-year JGBs.

* "We expect lackluster-to-benign results amid somewhat low

yields relative to the recent range, reflecting a pause in

fiscal concerns, and curve dynamics," Barclays analysts said in

a note.

* Investors are cautiously positioning ahead of next week's

Bank of Japan policy meeting, where expectations for a rate hike

have firmed amid signs of persistent inflationary pressures.

* JGBs rallied on Tuesday following a report that the BOJ

will consider maintaining the current pace of bond purchases

beyond next fiscal year, pausing its tapering plan.

* The yield on the 20-year JGB advanced 3 bps

to 3.590%, while the 30-year yield gained 2.5 bps

to 3.890%. The yield on the 40-year JGB, Japan's

longest tenor, held steady.

* The two-year yield, the one most sensitive

to Bank of Japan policy rates, edged up 0.5 bp to 1.420%, while

the five-year yield increased 1.5 bps to 1.940%.

($1 = 160.3900 yen)

(Reporting by Rocky Swift; Editing by Subhranshu Sahu)