TOKYO, Aug 27 (Reuters) - Japanese government bond prices slipped on Thursday as Tokyo stocks extended gains on the back of ebbing risk aversion.

The benchmark 10-year JGB yield rose one basis point to 0.380 percent, moving away from a 3-1/2-month low of 0.350 percent reached last week when a global turmoil in the equity markets hit investor risk appetite hard.

September 10-year JGB futures lost 0.07 point to 147.90.

Losses in the short end of the yield curve was lighter thanks to strong demand for new two-year debt. The bid-to-cover ratio, a gauge of demand at auctions, at Thursday's 2.5 trillion yen ($20.83 billion) two-year JGB sale rose to 4.39 from 3.84 at the previous sale last month.

Two-year JGBs have attracted steady investor demand as the Bank of Japan's debt-buying scheme has made short-term six-month and one-year bills in short supply.

The two-year yield rose half a basis point to 0.010 percent.

Japan's Nikkei share average rose one percent on Thursday, adding to the previous day's surge, after a strong rebound on Wall Street eased investors' fears of a prolonged global market rout.

($1 = 120.0100 yen) (Reporting by Tokyo markets team; Editing by Simon Cameron-Moore)