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JGB yields rise despite report dovish Amamiya approached to become BOJ chief

TOKYO, Feb 6 (Reuters) - Japanese government bond (JGB) yields rose on Monday, tracking a jump in U.S. Treasury yields after stunning jobs and services data, even as a report said Japan might pick a dovish policymaker as next central bank governor.

The Japanese government has sounded out Bank of Japan Deputy Governor Masayoshi Amamiya, who is seen by market participants as more dovish than other contenders for the post, to succeed incumbent Haruhiko Kuroda as central bank governor, the Nikkei newspaper reported.

Amamiya played a key role in drafting Kuroda's asset-buying programme in 2013 and consistently called for keeping ultra-low interest rates.

The choice of a successor to Kuroda, whose five-year term ends on April 8, will likely affect how soon the central bank could phase out its massive stimulus as inflation hit 4% in December, double its 2% target.

"The selection of Amamiya was the main scenario, so there was no big surprise," said Ataru Okumura, a strategist SMBC Nikko Securities. "Whoever becomes the governor, the BOJ's policy won't be different after April."

The 10-year JGB yield rose 0.5 basis point to 0.490%.

The 20-year JGB yield rose 2 bps to 1.300% and the 30-year JGB yield rose 2 bps to 1.535%.

On Friday, U.S. Treasury yields jumped after data showed job growth surged and services activity rebounded in January.

"I thought the news about Amamiya would send the yields lower, but higher U.S. Treasury yields weighed on sentiment," said Hiroshi Namioka, chief strategist and fund manager at T&D Asset Management.

The two-year JGB yield rose 0.5 basis point to -0.030% and the five-year yield rose 1 basis point to 0.165%.

The 40-year JGB yield was flat at 1.755%.

Benchmark 10-year JGB futures fell 31 yen to 146.84, with a trading volume of 5,303 lots. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)