TOKYO, April 17 (Reuters) - Japanese government bonds edged higher and the yield curve flattened on Tuesday, taking cues from an overnight climb in U.S. Treasuries and solid demand for newly auctioned 30-year debt.

The favourable auction result gave some reprieve to the long end of the yield curve, which had been under pressure since late last week as traders prepared for fresh supply including the 30-year offer and next week's 20-year JGB auction.

"The yield curve had been steepening as traders focused on the 30-year offer, and I think the market is feeling some relief now that the auction is over," said Yasunori Kuroda, a manager for Sompo Japan Insurance Inc.'s fixed income division.

The Finance Ministry said its offer of 600 billion yen ($5 billion) in 30-year JGBs produced a lowest price of 100.80 and an average price of 100.86. The bid-to-cover ratio was 4.26, up from 3.30 at the previous 30-year bond auction in January.

June 10-year JGB futures ended 0.05 point higher at 133.75 (2JGBv1: Quote , Profile , Research ), having trimmed some gains after rising to an intraday high of 133.90 after the auction results were announced.

U.S. Treasuries rebounded on Monday on a report showing a surprisingly sharp deterioration in home builder sentiment and on bargain hunting by some bond investors after U.S. benchmark yields reached two-month highs. Continued...

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