Japan's 10-year bond yield tracks US Treasury peers' declines

TOKYO, Nov 25 (Reuters) - Japan's 10-year government bond yield slipped on Monday, tracking U.S. Treasury bond yield declines following the selection of fund manager Scott Bessent as the next U.S. Treasury secretary.

The 10-year JGB yield fell 0.5 basis point (bp) to 1.075%.

Treasuries rallied in the Asian session on Monday as bond investors cheered the selection of Scott Bessent as U.S. Treasury secretary, reckoning on a steady hand on government finances.

Bond prices move inversely with bond yields.

Japan's 10-year bond yield last week hit a four-month high of 1.095% on expectations for the Bank of Japan's rate increase in the near future.

"The market still braces for the BOJ's rate hike, but for the 10-year bond yield to rise further, it needs a push from U.S. Treasury yields," said Naoya Hasegawa, chief bond strategist at Okasan Securities.

As of 0602 GMT, overnight index swap (OIS) indicated a 58.36% chance of the BOJ raising rates to 0.5% in December.

The two-year JGB yield was flat at 0.585% and the five-year yield fell 0.5 bp to 0.735%.

Investors also awaited the meeting of JGB primary dealers hosted by the Ministry of Finance on Tuesday, as they may see a hint for the government's plans for bond issuance next fiscal year, said Hasegawa.

The 20-year JGB yield fell 1 bp to 1.88%.

The 30-year JGB yield was flat at 2.285%.

The 40-year JGB yield rose 0.5 bp to 2.615% ahead of an auction for the bonds with the same maturity.

(Reporting by Junko Fujita; Editing by Eileen Soreng)