JGB yields rise as BOJ chief comments drive rate-hike bets

TOKYO, Dec 2 (Reuters) - Japanese government bond yields jumped on Monday, as comments from the Bank of Japan's governor drove bets for the central bank to hike interest rates as soon as this month.

BOJ Governor Kazuo Ueda said the timing of the next interest rate hike was "approaching", as the economy was moving in line with the central bank's forecasts, the Nikkei newspaper reported on Saturday, leaving open the chance of a December rate increase.

The two-year JGB yield rose 2 basis points (bps) to 0.615%, its highest level since October 2008.

The 10-year JGB yield rose 3 bps to 1.08%

Overnight index swaps (OIS) indicated a 63.63% chance of the BOJ raising rates to 0.5% in December, as of 0013 GMT.

Ueda, however, also said the BOJ wanted to scrutinise developments in the U.S. economy, as there was a "big question mark" on its outlook, such as the fallout from President-elect Donald Trump's proposed tariff hikes, according to the Nikkei.

Bonds with other maturities have not traded yet.

Benchmark 10-year JGB futures fell 0.36 yen to 142.7.

(Reporting by Junko Fujita; Editing by Rashmi Aich)