TOKYO, March 31 (Reuters) - Japan's 10-year government

bond yield fell to a three-week low on Monday, as investors

bought safe-haven assets on worries over an economic slowdown,

while expectations for the Bank of Japan's (BOJ) interest rate

hike receded.

The 10-year JGB yield fell 5.5 basis points

(bps) to 1.49%, its lowest level since March 11.

"The market had expected the BOJ would raise its policy rate

to 1% by sometime next year, and raise further to 1.25% after

that in the back of rising wages and prices," said Naoya

Hasegawa, chief bond strategist at Okasan Securities.

"That expectations have weakened for now amid growing

worries about the economic slowdown stemming from the U.S.

tariff policy," Hasegawa said.

The bets that the BOJ would raise its policy rate at a

faster pace than the market had expected sent the JGB yields to

hit more than a decade-high earlier this month.

The central bank kept interest rates steady this month and

warned of heightening global economic uncertainty, suggesting

the timing of further rate hikes will depend largely on the

fallout from potentially higher U.S. tariffs.

Japan's Nikkei share average tumbled on Monday to its lowest

point in more than six months, as investors assessed the risk of

the U.S. tariffs.

U.S. President Donald Trump is set to unveil a massive

tariff plan on Wednesday, and said that his reciprocal tariffs

will include all countries and not just a smaller group of 10 to

15 countries with the biggest trade imbalances.

The two-year JGB yield fell 3.5 bps to 0.83%

and the five-year yield fell 5 bps to 1.1%.

The 20-year JGB yield fell 1 bp to 2.24%.

The 30-year JGB yield rose 1 bp to 2.535% and

the 40-year JGB yield rose 2 bps to 2.8%.