* MSCI all-world index gains along with U.S. stocks
* BOJ comments push yen higher vs dollar
* Fed minutes expected during the U.S. session (Updates prices, adds gold prices, details)
By Caroline Valetkevitch
NEW YORK, May 21 World stock markets and U.S. bond yields rose 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 2:00 p.m. (1800 GMT), 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.
"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.
Adding to that view, New York Federal Reserve President William Dudley on Tuesday said the Fed would likely be "relatively slow" in hiking rates.
Earlier on Wednesday, Yellen gave a commencement address at New York University's commencement ceremony, but did not make any remarks about the economy or monetary policy.
MSCI's all-world equity index, which tracks shares in 45 nations, was up 0.3 percent, while European shares ended up 0.5 percent.
On Wall Street, the Dow Jones industrial average rose 114.28 points or 0.7 percent, to 16,488.59, the S&P 500 gained 7.77 points or 0.41 percent, to 1,880.6 and the Nasdaq Composite added 10.91 points or 0.27 percent, to 4,107.80.
In the foreign exchange market, the dollar fell to a 3-1/2-month low against the yen on optimistic 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.
"Expectations about additional easing measures in June have increased since the ECB's last meeting. And the European elections are also a factor in the euro's weakness," said John Doyle, director of markets at Tempus Consulting in Washington.
Benchmark 10-year Treasury notes were last down 10/32 in price to yield 2.54 percent compared with 2.509 percent late Tuesday.
OIL RISES, GOLD SLIPS
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.
Gold fell, while palladium touched a near three-year high and platinum rose near a two-month high as labor strikes in top producer South Africa dragged on. Spot gold was down 0.3 percent at $1,290.30 an ounce. (Additional reporting by Nigel Stephenson and Alex Lawler in London; Chuck Mikolajczak and Gertrude Chavez-Dreyfuss in New York; Editing by John Stonestreet, Toby Chopra, James Dalgleish and Chizu Nomiyama)