(Rewrites first paragraph and updates yield levels)

TOKYO, June 10 (Reuters) - Japanese government bonds

moved in a narrow range on Tuesday as traders weighed reports

about lawmakers considering a possible buyback of longer-dated

debt and fresh stimulus measures.

The 30-year JGB yield fell to as low as 2.86%

earlier in the session. It was last trading at 2.92%, up 1 basis

point (bp) from the previous session.

Yields move inversely to prices.

Reuters reported that Japan is considering buying back some

super-long government bonds issued in the past at low interest

rates.

The move shows the finance ministry's willingness to improve

demand for bonds with super-long maturities, whose yields

touched record highs last month, said Naoya Hasegawa, chief bond

strategist at Okasan Securities.

The latest report comes as the market awaits details of the

ministry's bond sale plans. Reuters reported last month that it

was considering a cut in the sale of super-long bonds.

The Ministry of Finance, which oversees the government's

debt issuance, will reach a final decision on the buybacks after

holding meetings with bond market participants on June 20 and

June 23, the sources told Reuters.

Meanwhile, local media reported on Tuesday that Japan's

ruling coalition agreed to include a plan to distribute cash

handouts in their election campaign pledges.

The move, which adds to concerns over the government's

already tattered finances, prompted investors to sell

shorter-dated bonds, said Katsutoshi Inadome, senior strategist

at Sumitomo Mitsui Trust Asset Management.

The 10-year JGB yield rose to as high as

1.48%, before easing to 1.475%, up 0.5 bp from the previous

session. The five-year yield was flat at 1.03%,

after rising to 1.04% earlier in the session.

"Without the report on bond buybacks, the JGBs could

have seen a sell-off across the curve," Inadome added.