TOKYO, June 9 (Reuters) - Japanese government bonds rallied

on Tuesday, reversing earlier declines, following a report that

the central bank will consider pausing a reduction in its

regular debt purchases next year.

Here are a few details:

* The benchmark 10-year JGB yield fell 5

basis points to 2.665%, after earlier reaching 2.74%, the

highest since May 22. Yields move inversely to bond prices.

* The Bank of Japan will consider maintaining the current

pace of bond purchases beyond next fiscal year, sources said,

pausing a tapering process in its quantitative tightening plan.

* JGBs fell earlier in the session as persistent inflation

concerns clouded the demand picture ahead of a sale of 30-year

bonds on Wednesday.

* "The recent rise in interest rates is driven more by

inflation concerns and fears that the Bank of Japan is lagging

behind in responding to price pressures than by

supply-and-demand factors," Takayuki Miyajima, senior economist

at Sony Financial Group, said in a note.

* Japan's Economic Revitalisation Minister Minoru Kiuchi

said on Tuesday that he hoped the BOJ would work closely with

the government to durably achieve its 2% inflation target. He

also said the government would keep scrutinising interest-rate

moves and their effects on the economy.

* JGB yields have been under upward pressure as expectations

firmed that the central bank will raise its policy rate by 25

bps to 1% at its June 15-16 meeting.

* Interest rate swaps data through Monday showed a 93%

probability of a hike, according to research firm Tokyo Tanshi.

* The BOJ has shifted to a more hawkish tone as the Iran

war-driven energy shock lifted inflation risks, and Governor

Kazuo Ueda has warned that energy shocks can become persistent

via wages and expectations.

* Moves in Japanese yields also tracked global bond markets,

where U.S. Treasury and euro zone yields have risen in recent

sessions amid persistent inflation pressures and expectations

for central bank tightening.

* The 20-year JGB yield slid 7 bps to 3.565%,

while the 30-year yield sank 6.5 bps to 3.870%.

The yield on the 40-year JGB, Japan's longest

tenor, rose 0.5 bps to 3.805%.

* The two-year yield, the one most sensitive

to BOJ policy rates, decreased 0.5 bps to 1.41%. The five-year

yield fell 2 bps to 1.920%.