TOKYO, April 2 (Reuters) - Japan's 10-year government

bond yield rose on Thursday, as investors weighed an auction of

the same-maturity bonds after its yield declined sharply in

recent sessions.

The 10-year JGB yield rose 1 basis point to

2.310%. Bond prices move inversely to prices.

The 10-year bond yield fell for three straight sessions

through Wednesday, after hitting a 27-year high of 2.39% on

Monday, as investors started rebuilding portfolios at the start

of the new fiscal year. Optimism for the de-escalation of the

Middle East conflict boosted appetite for the debt.

"The outcome of the auction will be moderately firm, but

investors are cautious about buying the 10-year bonds because

the yield has fallen," said Miki Den, a senior Japan rate

strategist at SMBC Nikko Securities.

The five-year yield rose 1.5 basis points to

1.745%. Bonds with other tenors have not been traded, as of 0103

GMT.