TOKYO, March 17 (Reuters) - Benchmark Japanese

government bonds (JGBs) edged higher on Tuesday, supported by

demand ahead of a long-term debt sale, as investors weighed the

impact of imported energy inflation.

The 10-year JGB yield fell 0.5 basis points

to 2.27%. Yields move inversely to bond prices.

The Ministry of Finance is due to sell about 800 billion yen

($5.03 billion) in 20-year JGBs later in the day.

The yield on the security hit a five-week high on Monday, as

the raging war in Iran kept oil prices elevated and reinforced

expectations that central banks may need to raise rates to

contain inflation.

The Bank of Japan is widely expected to leave its key

interest rate unchanged at its policy meeting on Thursday.

Still, surging imported energy costs and a weakening yen are

strengthening the case for a quicker pace of rate hikes.

The recent rise in yields, along with MoF plans to reduce

issuance of long-term JGBs in the next fiscal year, could

support demand at the auction, said Gen Taniguchi, market

analyst at Mizuho Securities.

"These changes should help to tighten up supply/demand in

the super-long sector quite significantly, as could apparent

confirmation that the MoF intends to keep shortening the average

maturity of its fresh issuance," Taniguchi said in a note.

The 20-year JGB yield ticked up 0.5 bp to

3.150%. The yield on the 40-year note, Japan's

longest tenor, fell 0.5 bps to 3.785%.

The two-year yield, the one most sensitive to

BOJ policy rates, was flat at 1.275%. The five-year yield

fell 0.5 bps to 1.685%.

($1 = 159.1900 yen)