June 20 (Reuters) - Japanese bond markets saw foreign outflows for the first time in three weeks in the week to June 14, driven by caution ahead of the Bank of Japan's (BOJ) policy decision.

Foreigners sold a net 1.14 trillion yen ($7.21 billion) of short-term debt securities, the biggest since the week ending May 24. They also shed a net 235.8 billion yen of Japanese long-term bonds during the week, following two straight weeks of purchases.

The BOJ kept its policy settings unchanged last Friday.

This week, Governor Kazuo Ueda said the central bank could raise interest rates next month depending on economic data available at the time, underscoring its resolve to steadily push up borrowing costs from current near-zero levels.

Analysts expect the decision to raise rates will particularly affect the shorter end of the yield curve.

Japan's benchmark 10-year JGB yield, which moves inversely to prices, hit a month's low of 0.915% last week, losing about 3.5 basis points during the week.

Meanwhile, overseas investors secured a net 48.5 billion yen of Japanese stocks, after net sales of 351.73 billion yen in the previous week, data from stock exchanges showed.

They bought derivative contracts worth a net 297.92 billion yen in their biggest weekly net purchase since Feb. 9.

Japan's cash equities markets, however, saw foreign outflows of 249.42 billion yen during the week, the fourth weekly net selling in a row.

Japanese investors poured 653.6 billion yen into long-term overseas bonds on a net basis after about 2.65 trillion yen of net selling in the prior week.

They, however, sold a net 88.8 billion yen of short-term foreign debt.

Japanese domestic players also sold overseas equity shares of a net 108.4 billion yen, extending weekly net withdrawals into a fourth consecutive week. ($1 = 158.1300 yen)

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Mrigank Dhaniwala)