JGB yields fall as inflation concerns ease ahead of Fed decision

By Satoshi Sugiyama

TOKYO, June 17 (Reuters) - Japanese government bond (JGB) yields fell on Wednesday after a slump in crude oil prices eased global inflation concerns ahead of the U.S. Federal Reserve policy decision.

Here are a few details:

* The benchmark 10-year JGB yield fell 5 basis points (bps) to 2.595%. Yields move inversely to bond prices.

* The 20-year JGB yield slid 5 bps to 3.485%. The 30-year yield sank 7 bps to 3.705%. Meanwhile, the two-year yield, the one most sensitive to Bank of Japan policy rates, decreased 2 bps to 1.385%. The five-year yield fell 5 bps to 1.860%.

* Oil prices inched lower on Wednesday, extending the previous session's declines.

* "There may also have been some rebound buying after yesterday's sell-off, but the main drivers were the drop in oil prices and the decline in U.S. yields," said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management.

* Investors will be watching new Federal Reserve Chair Kevin Warsh closely at his first post-Federal Open Market Committee press conference on Wednesday, focusing on his remarks and any changes in the Fed's communication. The Fed is widely expected to keep interest rates steady and remove its reference to an easing bias.

* The BOJ on Tuesday raised interest rates to a 31-year high and signalled readiness to tighten further as it focuses on taming price pressures from the Iran-war-induced energy shock. (Reporting by Satoshi Sugiyama; Editing by Sherry Jacob-Phillips and Ronojoy Mazumdar)