TOKYO, Nov 29 (Reuters) - Medium- and long-term Japanese

government bond (JGB) yields rose on Friday, as inflation data

for Japan's capital came in hotter-than-expected, fuelling

expectations that the Bank of Japan would raise interest rates

in December.

The 10-year JGB yield rose as high as

1.065%before easing to lie flat at 1.05%, while 10-year JGB

futures ticked up 0.04 points to 143.06 yen.

The five-year yield rest at 0.72% after

earlier touching 0.73%.

Data on Friday showed Tokyo core consumer inflation rose

2.2% in November from a year ago compared with a median forecast

for a 2.1% gain and accelerating from a 1.8% increase in

October.

The probability of a December hike has become "increasingly

likely" after the latest inflation data, said Ryutaro Kimura, a

fixed income strategist at AXA Investment Managers.

Traders had been undecided before the data, but now see

around a 60% chance the BOJ will hike rates again next month.

"However, I expect that the additional upward pressure on

long-term interest rates resulting from a December rate hike

will remain limited" given Japan's modest economic growth,

Kimura added.

The two-year JGB yield climbed 1 bps to

0.585%, buoyed higher following the announcement of auction

results for the bond that were somewhat soft.

The bid-to-cover ratio, a common measure of demand, slid to

3.63 from 4.87 in October.

Superlong-end yields declined, with the 20-year JGB yield

slipping 2 bps to a two-week low of 1.85%.

The 30-year JGB yield fell 1.5 bps to 2.275%,

while the 40-year JGB yield was 2 bps lower at

2.64%.

Investors have been awaiting JGB issuance details for the

coming year, which are expected to be announced mid-December.

Many analysts expect total bond issuance for next fiscal

year to remain largely unchanged from this year's, or increase

depending on the size of tax breaks under negotiation among

politicians.