TOKYO, Nov 26 (Reuters) - Japanese government bonds

(JGBs) edged lower on Wednesday ahead of a closely watched

auction that will test investor demand for super-long-term debt

as the nation ramps up spending.

The benchmark 10-year JGB yield rose 0.5

basis point (bp) to 1.805% in early trading, after a 2.5 bps

increase in the previous session. The 20-year yield

rose 0.5 bp to 2.825%.

The Ministry of Finance is due to sell about 400 billion yen

in 40-year JGBs, the nation's longest tenor, a week after yields

on the debt surged to a record high on concerns over the size of

Prime Minister Sanae Takaichi's economic stimulus plan.

The cabinet on Friday approved a 21.3 trillion yen ($135.95

billion) spending package, significantly larger than the

previous year's. Takaichi has said the plan would be funded with

new bond issuance if tax revenue is not sufficient, and overall

JGB issuance is expected to be smaller than last year's.

Shorter-term yields have also been on the rise on

expectations the Bank of Japan may be closer to raising its

policy rate.

The BOJ is "nearing" a decision to raise interest rates,

board member Kazuyuki Masu was quoted as saying in a Nikkei

newspaper report over the weekend.

(Reporting by Rocky Swift and Junko Fujita; Editing by

Subhranshu Sahu)