TOKYO, March 5 (Reuters) - Japanese government bond

(JGB) yields rose on Thursday as investors assessed the

potential risk of a pickup in inflation and the outlook for

interest rate hikes after the widening Middle East conflict

pushed oil prices sharply higher.

The 30-year yield added 4.5 basis points

(bps) to 3.395%, while the benchmark 10-year JGB yield

rose 3.5 bps to 2.145%. Yields move inversely to

bond prices.

"The situation in the Middle East could become a factor

prompting bond selling," Miki Den, senior Japan rate strategist

at SMBC Nikko Securities, said in a note.

"However, given the relatively attractive valuations in the

super-long end and tighter supply-demand conditions, there is

likely limited room for yields to rise."

The Japanese finance ministry is expected to auction about

700 billion yen ($4.46 billion) of 30-year bonds later in the

day.

The 20-year JGB yield climbed 4 bps

to 3.000%. The five-year yield gained 2.5 bps

to 1.600%.

Other JGB tenors saw little activity in morning trading,

with the yield on the 40-year JGB, Japan's

longest tenor, was at 3.57%.

The two-year yield, the one most sensitive to

Bank of Japan policy rates, was unchanged at 1.23%.

Shorter-dated JGB yields fell on Wednesday as investors

scaled back expectations for an early rate hike in the wake of

U.S. and Israeli military actions against Iran.

($1 = 157.0300 yen)

(Reporting by Satoshi Sugiyama; Editing by Subhranshu Sahu)