TOKYO, July 2 (Reuters) - Japanese government bond (JGB)

yields rose on Thursday as investors awaited the outcome of an

auction of 10-year bonds, which strategists expected to be

moderately weak.

Here are a few details:

* The benchmark 10-year JGB yield rose 2

basis points (bps) to 2.720%. Yields move inversely to bond

prices.

* The 30-year yield rose 2.5 bps to 3.980%.

* The finance ministry will sell about 2.6 trillion yen

($16.00 billion) of 10-year bonds later in the day.

* The market is concerned that the Bank of Japan will be

behind the curve in coping with inflation, and the central bank

would have to accelerate interest rate hikes, strategists said.

* "The outcome of the auction will be between moderately

firm and relatively weak," said Takuya Onizawa, a fixed income

strategist at Mitsubishi UFJ Morgan Stanley Securities.

* "Excessive worries over inflation have receded as oil

prices fall, but at the same time, the weak yen has pressured

prices in Japan as import costs would rise."

* The yen fell to 40-year lows against the U.S. dollar, and

thin trading ahead of a U.S. holiday kept traders on high alert

for intervention to boost the yen.

* The five-year yield rose 1.5 bps to 1.925%.

($1 = 162.5200 yen)

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)