TOKYO, Oct 16 (Reuters) - Japanese government bond (JGB)

yields fell on Wednesday, tracking an overnight decline in U.S.

Treasury yields, while reactions to a Bank of Japan board

member's call for a "moderate pace" on interest rate hikes were

muted.

U.S. Treasury yields slid on Tuesday, easing further from

recent highs following a soft reading of manufacturing activity

in New York State. The U.S. 10-year and 2-year yields edged

marginally lower in Asian trading hours.

The 10-year JGB yield was down 1.5 basis

points to 0.955% as of 0539 GMT, while 10-year JGB futures

rose 0.18 points to 143.95 yen.

The bond market gave little reaction to BOJ policymaker

Seiji Adachi's comments that the central bank must raise rates

at a "very moderate" pace, echoing signals from Governor Kazuo

Ueda that the BOJ was in no rush.

Wednesday's fall in yields seemed to be limited in

comparison to overseas yields, possibly due to fresh jitters

over Japan's budget plans, said Katsutoshi Inadome, senior

strategist at Sumitomo Mitsui Trust Asset Management.

According to a local media report on Tuesday, new Japanese

Prime Minister Shigeru Ishiba said his government aims to

compile a supplementary budget for the current fiscal year in

excess of last year's 13 trillion yen ($87 billion).

"The market had seen (Ishiba) as someone who would safeguard

(the primary balance)," said Inadome, adding that yields could

rise if the budget disappoints.

Ishiba has drifted away from emphasizing fiscal discipline

to show his readiness to deploy fiscal stimulus.

Earlier this month, he also said Japan is not ready for an

additional rate increase, in an apparent effort to shake off his

reputation as a monetary hawk.

The 20-year JGB yield fell 1 bp to 1.74%,

while the 30-year yield ticked down 0.5 bp to

2.16%.

The two-year yield was flat at 0.42%.

The five-year yield slid 1 bp to 0.58%.

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