TOKYO, July 7 (Reuters) - Japanese government bond yields rose to multi-week highs on Friday, after data showed the nation's pay grew the fastest in nearly three decades, driving speculation that the Bank of Japan (BOJ) would tweak its ultra-loose policy.
The 10-year JGB yield rose 3 basis points (bps) to 0.435%, its highest since June 14. The five-year yield rose 3 basis points to 0.095%, its highest since May 30.
Japan's base salary soared 1.8% year-on-year in May, the biggest increase since February 1995, as wage hikes induced by labour talks this spring started to take effect.
"The salary grew significantly in May and speculation that the central bank may tweak its policy accelerated," said Ataru Okumura, senior rates strategist at SMBC Nikko Securities.
Wage growth is one of the key trends on the BOJ radar as the central bank considers if and when it should unwind its ultra-loose monetary stimulus.
The 20-year JGB yield jumped 4 bps to 1.020, and the 30-year JGB yield rose 3 bps to 1.260%, their highest since June 12.
The 40-year JGB yield rose 2.5 bps to 1.405%.
The two-year JGB yield rose 2 bps to o -0.045%.
Benchmark 10-year JGB futures fell 0.43 yen to 148.14, with a trading volume of 18,193 lots. (Reporting by Junko Fujita; Editing by Varun H K)
