JGB yields fall after BOJ board member remarks less hawkish than expected

TOKYO, Feb 19 (Reuters) - Japanese government bond yields fell on Wednesday as investors bought back bonds after they found remarks from a Bank of Japan (BOJ) board member were not as hawkish as the market had expected.

The two-year JGB yield JP2YTN=JBTC fell 0.5 basis point (bp) to 0.815% and the five-year yield JP5YTN=JBTC fell 1 bp to 1.075%.

The BOJ must raise interest rates more as keeping them at current low levels could cause excessive risk-taking and push up inflation too much, its board member Hajime Takata said on Wednesday.

"His comments were not extremely hawkish, and investors who wanted to confirm the content of Takata's remarks bought back bonds," said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management.

The yields hit their multi-year highs until the previous session as the market bet the BOJ could hike rates more aggressively than initially thought on prospects of sustained wage gains.

Still, the 10-year JGB yield JP10YTN=JBTC inched up 0.5 bp to 1.435%, its highest since November 2009.

The 20-year JGB yield JP20YTN=JBTC fell 0.5 bp to 2.060%.

The 30-year JGB yield JP30YTN=JBTC fell 1 bp to 2.330%.