GLOBAL MARKETS-World stock indexes, bond yields rise before Fed minutes
* MSCI all-world index gains, U.S. stocks up in early trading
* BOJ comments push yen higher vs dollar
* Fed minutes expected during the U.S. session (Updates with U.S. markets, changes byline, dateline, previous LONDON)
NEW YORK, May 21 (Reuters) - World stock markets rose while U.S. bond yields edged higher on Wednesday on views the Federal Reserve could raise interest rates more slowly than expected.
The euro declined for a second straight session against the dollar on expectations of further easing from the European Central Bank.
Minutes from the Fed's last meeting, due later Wednesday, could shed light on the timing of rate rises. Fed Chair Janet Yellen said in March the U.S. central bank could raise rates six months after its bond-buying program ended.
"There's a concern that rates will rise much more slowly than the market is anticipating," said Sean Murphy, Treasuries trader at Societe Generale in New York.
Adding to that view, New York Federal Reserve President William Dudley on Tuesday said the Fed would likely be "relatively slow" in hiking rates.
"I suspect they are going to continue this low interest rate environment, very accommodative monetary policy, for a very long period of time in an effort to help markets feel a little bit calmer ...," said Joseph Tanious, global market strategist at J.P. Morgan Asset Management.
Later on Wednesday, Yellen makes a commencement address in New York.
MSCI's all-world equity index, which tracks shares in 45 nations, was up 0.4 percent, while European shares were up 0.6 percent.
On Wall Street, the Dow Jones industrial average rose 125.19 points or 0.76 percent, to 16,499.5, the S&P 500 gained 10.79 points or 0.58 percent, to 1,883.62 and the Nasdaq Composite added 24.77 points or 0.6 percent, to 4,121.66.
In the foreign exchange market, the dollar fell to a 3-1/2-month low against the yen on comments from Bank of Japan Governor Haruhiko Kuroda, who gave no hint of further monetary easing in the near term.
The dollar fell to 100.805 yen in London trading, but recovered in New York trading to trade higher at 101.54.
In mid-morning New York trading, the euro fell to one-week lows against the dollar of $1.3652 and was last at $1.3661, down 0.3 percent on the day.
Benchmark 10-year Treasury notes were last down 10/32 in price to yield 2.54 percent, from 2.509 percent late Tuesday.
Oil rose to $110 a barrel, supported by an industry report showing U.S. crude inventories had unexpectedly fallen last week and by persistent disruption to Libya's output amid renewed fighting.
Brent crude gained 38 cents to $110.07 a barrel, while U.S. crude rose 82 cents at $103.15. (Additional reporting by Nigel Stephenson and Alex Lawler in London and Sam Forgione in New York; Editing by John Stonestreet, Toby Chopra and James Dalgleish)