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JGBs supported by weaker equities, 40-year sale attracts ample demand

TOKYO, May 29 (Reuters) - Japanese government bond prices edged higher on Tuesday, supported by weaker equities as risk aversion gripped the broader markets.

Safe-haven government bonds, such as JGBs, U.S. Treasuries and German bunds, have gained this week as political turmoil in Italy has curbed investor demand for riskier assets.

The June 10-year JGB futures rose 0.06 point to 150.98.

The 30-year JGB yield fell 1.5 basis point to 0.720 percent.

The 40-year yield fell 2 basis points to 0.855 percent after a debt auction of the maturity attracted ample investor demand.

The bid-to-cover ratio, a gauge of demand, at the 400 billion yen ($3.67 billion) 40-year auction rose to 3.92 from 3.19 at the previous sale in March.

Japanese shares fell to one-month lows as concerns over European politics added to the list of reasons to be cautious about the global economic outlook. ($1 = 108.9900 yen) (Reporting by the Tokyo markets team; Editing by Sunil Nair)