(Recasts paragraph 1, updates yield levels)

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

government bonds (JGBs) fell sharply on Tuesday after Reuters

reported the finance ministry may reduce the issuance of those

bonds.

The 30-year JGB yield extended the declines,

falling 12.5 basis points (bps) to 2.91%, its lowest since May

14.

The 20-year JGB yield fell 13.5 bps to

2.37%.

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

the composition of its bond programme for the current fiscal

year, which could involve trimming the issuance of super-long

bonds, two sources told Reuters on Tuesday.

The report came as the market expected the government to

step in to curb the sell-off. The yields on long-dated debt rose

to record highs amid concerns over a drop in bond buying by the

Bank of Japan (BOJ) and political jockeying over stimulus.

"The yields on bonds with super-long maturities extended

declines (after the 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 also extended

declines, falling 4.5 bps to 1.46%.

If the MOF were to reduce issuance of 20-, 30- or

40-year Japanese government bonds, it would likely increase

issuance of shorter-dated debt instead, the sources said.

The two-year JGB yield was last up 0.5 bp to

0.725%.

The five-year yield rose to 1.02%, before

falling 0.5 bps to 1.005%.