TOKYO - Medium- and long-term Japanese government bond (JGB) yields rose on Friday, as inflation data for Japan's capital came in hotter-than-expected, fuelling expectations that the Bank of Japan would raise interest rates in December.

The 10-year JGB yield rose as high as 1.065%before easing to lie flat at 1.05%, while 10-year JGB futures ticked up 0.04 points to 143.06 yen.

The five-year yield rest at 0.72% after earlier touching 0.73%.

Data on Friday showed Tokyo core consumer inflation rose 2.2% in November from a year ago compared with a median forecast for a 2.1% gain and accelerating from a 1.8% increase in October.

The probability of a December hike has become "increasingly likely" after the latest inflation data, said Ryutaro Kimura, a fixed income strategist at AXA Investment Managers.

Traders had been undecided before the data, but now see around a 60% chance the BOJ will hike rates again next month.

"However, I expect that the additional upward pressure on long-term interest rates resulting from a December rate hike will remain limited" given Japan's modest economic growth, Kimura added.

The two-year JGB yield climbed 1 bps to 0.585%, buoyed higher following the announcement of auction results for the bond that were somewhat soft.

The bid-to-cover ratio, a common measure of demand, slid to 3.63 from 4.87 in October.

Superlong-end yields declined, with the 20-year JGB yield slipping 2 bps to a two-week low of 1.85%.

The 30-year JGB yield fell 1.5 bps to 2.275%, while the 40-year JGB yield was 2 bps lower at 2.64%.

Investors have been awaiting JGB issuance details for the coming year, which are expected to be announced mid-December.

Many analysts expect total bond issuance for next fiscal year to remain largely unchanged from this year's, or increase depending on the size of tax breaks under negotiation among politicians.

(Reporting by Brigid Riley; Editing by Rashmi Aich)