* Domestic wholesale trade jumps 1.2 pct in May
* Canadian 10-year government yield hits five-week high
By Richard Leong
July 23 (Reuters) - The Canadian dollar was little changed against the greenback on Monday on bets of solid domestic economic growth, while Canadian yields climbed in step with other major sovereign yields in the wake of a Reuters report that said the Bank of Japan is debating whether to scale back its easy monetary policy.
Higher oil prices due to tension between Iran and the United States, together with a spike in wholesale trade in May, also helped bolster the loonie. looks like GDP is coming relatively firm," said Mark Chandler, head of Canadian rates strategy at RBC Dominion Securities in Toronto.
Chandler projected Canadian gross domestic product likely grew at a 2.5 percent to 3.0 percent pace in the second quarter.
Canadian wholesale trade grew 1.2 percent in May, Statistics Canada said on Monday.
The upbeat figure followed strong readings on inflation and retail sales released last week. loonie registered a 0.1 percent gain against the dollar last week after U.S. President Donald Trump on Thursday and Friday complained about a strong greenback and the rise in U.S. interest rates.
At 11:40 a.m. (1540 GMT), the U.S. dollar was flat against its Canadian counterpart at C$1.3147 CAD= , according to Reuters data.
Meanwhile, the yield on 10-year Canadian government debt CA10YT=RR rose 4 basis points to 2.218 percent after touching 2.220 percent, which was the highest since June 15, Reuters data showed.
The Bank of Japan, facing stubbornly low inflation, is in unusually active discussions, with changes to its interest-rate targets and stock-buying program on the table, people familiar with the central bank's thinking told Reuters. BOJ's current policy, adopted in mid-2016, consists mainly of negative short-term interest rates, keeping the 10-year yield around zero percent and buying about 6 trillion yen worth of stocks through exchange traded funds (ETFs).
Earlier Monday, Japanese 10-year government yield JP10YT=RR jumped to 0.093 percent, its highest since Feb. 2.