TOKYO, March 12 (Reuters) - Japan's 10-year government

bond (JGB) yield hit a three-month high on Tuesday, as market

players bet the Bank of Japan (BOJ) would end its negative rate

policy as early as this month.

The 10-year JGB yield rose to 0.775%, its

highest since Dec. 11, before easing to 0.77%, up 1 basis point

(bp) from the previous session.

"The market has already priced in the end of the BOJ's

policy tweak," said Keisuke Tsuruta, senior fixed income

strategist at Mitsubishi UFJ Morgan Stanley Securities.

"The yields may move depending on what is going to be

announced at the BOJ's policy meeting. There are still some

uncertainties about the outcome."

A growing number of BOJ policymakers are warming to the idea

of ending negative interest rates this month and the central

bank will likely overhaul its massive stimulus programme that

consists of a bond yield control and purchases of riskier

assets, Reuters reported last week.

The market eyes on the outcome of an auction for five-year

bonds later in the day. The yield on the five-year bond

rose to 0.4% in the previous session, its highest

since Nov. 14. It was last down 0.5 bp at 0.370%.

"The auction will become a gauge for the demand for the note

with this duration at this yield level," said Tsuruta.

The two-year JGB yield was flat at 0.195%.

The 20-year JGB yield was flat at 1.54% and

the 30-year JGB yield rose 0.5 bp to 1.820%.