TOKYO, June 7 (Reuters) - Japanese government bond (JGB)

yields rose on Friday, as investor focus shifted to whether the

Bank of Japan (BOJ) will announce a tapering of its bond

purchases next week.

Yields have fallen from more than a decade peaks this week,

tracking a decline in U.S. Treasury yields.

Firm demand at an auction for 30-year JGBs on Thursday added

downward pressure on yields, but the market broke the trend on

Friday, with yields rising across the curve.

The benchmark 10-year yield rose 2.5 basis

points (bps) to 0.98%, while 10-year futures fell 0.28

yen to 143.87 yen.

The two-year yield, which is more sensitive to

monetary policy expectations, also ticked up 2.5 bps to 0.355%.

The upward move largely appeared to be a rebound after a

significant decline in the previous session, with investors

still cautious ahead of the BOJ's meeting on June 13-14, said

Yurie Suzuki, a market analyst at Mizuho Securities.

"It's not as if market expectations regarding BOJ policy

such as those for additional rate hikes in the future have

lessened, so I believe that's connected to the sell-off," she

added.

Yields move inversely to bond prices, rising as bonds are

sold and prices fall.

Many market players anticipate the central bank could begin

a full-fledged tapering of bond purchases at its June meeting,

following an unexpected cut to a segment of the BOJ's offer

amounts on May 13 and a hawkish turn in policymakers' comments.

Expectations have also grown for another rate hike as soon

as July.

The BOJ left its offer amounts unchanged at a bond-buying

operation in the Asian morning, although analysts said that's

had little effect on today's market moves.

The five-year yield climbed 3 bps to 0.57%.

The 20-year yield was 2.5 bps higher at

1.78%, while the 30-year yield edged up 1.5 bps

to 2.1%.

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