TOKYO, Dec 5 (Reuters) - Japanese government bond (JGB)

yields rose on Thursday, as market participants grappled with

wavering expectations that the Bank of Japan will deliver an

interest rate hike this month.

The 10-year JGB yield rose 1 basis point (bp)

to 1.06% after sliding to a three-week low of 1.04% on

Wednesday, while 10-year JGB futures slipped 0.08 yen

to 143.08 yen.

"It seems like we're experiencing a rebound from yesterday,"

said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui

Trust Asset Management.

"Yesterday, the view spread that there would be no rate hike due

to media reports, but the thinking seems to have shifted back

today to the possibility that there could be one."

Expectations had been growing that the BOJ will hike rates at

its Dec. 18-19 monetary policy meeting, buoyed by Governor Kazuo

Ueda's comments in an interview with Nikkei newspaper that the

timing of the next rate hike was "approaching".

But some media reports published on Wednesday suggested the

BOJ may skip a rate hike this month, sending those expectations

tumbling.

Markets now see about a 37% chance of a rate increase in

December, down from around 60% on Monday.

Toyoaki Nakamura, one of the BOJ board's more dovish members,

said on Thursday the central bank must move "cautiously" in

raising interest rates, highlighting uncertainty around the

chances of a hike this month.

The two-year JGB yield fell 0.5 bp to 0.58%,

while the five-year yield ticked up 0.5 bp to

0.715%.

The 30-year JGB yield was up 2 bps at 2.295%

after an auction for the bonds garnered decent demand.

The bid-to-cover ratio, a common measure of demand, came in

at 3.46, up marginally from 3.44 in November.

The 20-year JGB yield rose 1.5 bps to 1.87%.

(Reporting by Brigid Riley; Editing by Varun H K)