By Junko Fujita
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 JP10YTN=JBTC 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 JP5YTN=JBTC rose 1.5 basis points to 1.745%. Bonds with other tenors have not been traded, as of 0103 GMT.