RPT-GLOBAL MARKETS-Bonds stumble, dollar rises after Bernanke

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* Government bonds drop on Bernanke inflation warning

* U.S. dollar hits three-month high against yen

* Asia stocks slip with eyes on inflation, financials

By Kevin Plumberg

HONG KONG, June 10 (Reuters) - Government bond prices dived and the U.S. dollar rose to a three-month high against the yen on Tuesday, after a stark inflation warning from Federal Reserve chairman Ben Bernanke increased expectations that U.S. interest rates will rise.

The stronger dollar boosted shares in some Japanese exporters, but concern about the strength of inflation after oil hit a fresh record on Friday close to $140 a barrel weighed on stocks elsewhere, forcing most major indexes into the red.

The jump in oil prices has raised the risk that inflation could sail higher and the Fed will "strongly resist" public expectations for longer-term price pressures to get out of hand, Bernanke said in a speech. [ID:nN09303720]

His remarks pushed the benchmark 2-year U.S. Treasury yield, the most sensitive to monetary policy, to a five-month high.

The 2-year Japanese government bond yield hit its highest level since early August, as investors factored in a risk that other central banks might have to raise interest rates as well.

Bernanke's comments followed sobering remarks from European Central Bank President Jean-Claude Trichet. He jolted markets last week by suggesting euro zone rates could rise as early as July.

"Both Bernanke and Trichet comments, whether by design or not, are occurring one after the other, and have the effect of tightening global liquidity while keeping dollar weakness capped. What happens with oil prices in this environment will be critical," said Ashley Davis, currency strategist with UBS in Singapore.

The 2-year U.S. Treasury yield, which moves inversely to the price, was at 2.9285 percent after jumping to a high of 2.9656 percent US2YT=RR, up from 2.7148 percent late on Monday.

The 10-year yield US10YT=RR rose to 4.0559 percent from 4.0190 percent.

The 10-year Japanese government bond yield rose 10 basis points on the day to 1.815 percent JP10YTN=JBTC, its highest level since July 2007.

Besides Bernanke, other U.S. policymakers have stepped up their rhetoric to curb further weakness in the dollar. U.S. Treasury Secretary Henry Paulson said on Monday he would not rule out intervention in the currency market to keep the dollar from falling. [ID:nN09402403]