(Updates yields)

TOKYO, May 27 (Reuters) - Yields on super-long Japanese

government bonds (JGBs) fell sharply on Tuesday after Reuters

reported the country's finance ministry might issue fewer of

these bonds.

The 30-year JGB yield fell sharply following

the report, dropping 18.5 basis points (bps) to 2.85%. It traded

as high as 2.955% earlier in the session.

The 20-year JGB yield fell 16.5 bps to 2.34%,

after trading as high as 2.44%, while the 40-year yield sank 24

bps to 3.295%, after touching a session high of 3.435%.

The 30-, 20- and 40-year yields had all fallen by smaller

margins earlier in the session on expectations that the

government would step in to curb a sell-off in super-long bonds.

The yields extended their declines after Reuters reported

that Japan's Ministry of Finance (MOF) will consider tweaking

the composition of its bond programme for this fiscal year,

which could involve trimming the issuance of super-long bonds.

Last week, yields surged to record levels as a weak auction

of the 20-year paper coincided with concerns about political

jockeying over a government stimulus program and the likelihood

that the Bank of Japan (BOJ) would curb its purchases.

"The yields on bonds with super-long maturities extended

declines (after the Reuters report), but those on shorter-dated

bonds rose on concerns that the MOF may increase the sale of

those bonds," said Naoya Hasegawa, chief bond strategist at

Okasan Securities.

The 10-year JGB yield was off just 4 bps to

1.465%.

The two-year JGB yield was last up 1 bp to

0.73%.