TOKYO, Aug 29 (Reuters) - Japanese government bond yields tracked U.S. Treasuries higher on Monday, as traders ramped up bets for continued aggressive monetary tightening by the Federal Reserve.
The 10-year JGB yield rose 2 basis points to 0.235%, as of 0440 GMT, the highest level since July 21, while benchmark 10-year JGB futures slid 0.33 point to 149.29.
Equivalent cash Treasury notes saw yields climb as much as 9 basis points to touch 3.127% in Tokyo trading, just 1 basis point shy of Thursday's two-month peak.
U.S. Fed Chair Jerome Powell said on Friday at the central bank's annual symposium in Jackson Hole, Wyoming that tighter monetary policy would be needed "for some time."
Money markets have wound up bets for another super-sized 75 basis-point rate hike next month to 74.5%.
"The softness in the market is a little surprising," said Shinsuke Kajita, chief strategist at Resona Holdings.
"The rise in Treasury yields is a weight. JGB auctions this week could become a focal point for investors."
The Ministry of Finance is scheduled to sell two-year notes on Tuesday and 10-year paper on Thursday.
Superlong JGB yields rose strongly on Monday, with that on the 20-year bond jumping 3 basis points to 0.865%, while the 30-year climbed 4 basis points to 1.185%.
Japan's five-year yield added 1 basis point to 0.020%. The two-year note had yet to trade on Monday, and last yielded -0.090%.
(Reporting by Tokyo markets team; Editing by Sherry Jacob-Phillips)
