TOKYO, June 19 (Reuters) - Japanese government bonds

crept higher on Thursday, supported by a decline in domestic

shares and caution ahead of a five-year debt auction.

The five-year yield fell 1.5 basis points

(bps) to 0.99%. The 10-year yield slipped 1 bp to

1.445%. The Nikkei share gauge slid 0.7%.

There has been extra scrutiny of sales of JGBs after weak

demand at auctions last month triggered a surge in long-term

yields to record levels.

The Ministry of Finance is expected to reduce its issuance

of longer-dated bonds to support demand, which would be

counterbalanced by increased sales of shorter-dated notes.

Bonds have also been under pressure in Japan and other major

markets as investors grew wary about widening fiscal deficits

and debt piles. Japanese lawmakers are mulling cash handouts and

other stimulus to woo voters ahead of an upper house election

slated for July.

Under a plan laid out last July, the Bank of Japan has been

slowing its monthly bond purchases by around 400 billion yen

steps each quarter. The central bank said on Tuesday the

tapering pace will slow to 200 billion yen step changes per

quarter from next April.