Japan's 10-year bond yield reverses course to fall after BOJ decision

(Adds comments, updates yields)

TOKYO, Oct 31 (Reuters) - Japan's 10-year government bond (JGB) yield fell after the Bank of Japan (BOJ) kept its policy unchanged and the market took its outlook report as dovish.

The 10-year JGB yield fell 1 basis point (bp) to 0.94%, after rising to a high of 0.96% before the decision.

The BOJ maintained ultra-low interest rates as widely expected, but said in a quarterly report that it needed to pay due attention to the future course of overseas economies, particularly the U.S.

"There had been no mention of the U.S. economy in its quarterly reports, but the BOJ brought this up this time, which means it may be a bit cautious about the policy shift," said Miki Den, senior Japan rate strategist at SMBC Nikko Securities.

The market is also cautious that the BOJ may amend the wording of its reference to future policy, strategists said.

"BOJ officials have said the central bank is in no rush to raise rates, but Governor (Kazuo) Ueda may take out those words today in his statement, which weighs on bond prices." said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management.

By sending two different messages, the BOJ may be trying to be neutral, said SMBC Nikko's Den.

The BOJ ended negative interest rates in March and raised its short-term policy target to 0.25% in July. But central bank officials have since signalled a cautious and slow approach to shifting policy.

The five-year yield fell 1 bp to 0.57%, after rising to 0.58% earlier in the session.

The 20-year JGB yield fell 2 bps 1.78%, after hitting 1.795%. The 30-year JGB yield fell 1 bp to 2.21%. (Reporting by Junko Fujita; Editing by Nicholas Yong and Subhranshu Sahu)