Japan bonds sold, this time in relief

SINGAPORE, April 10 (Reuters) - Japanese government bonds were sold on Thursday as investors moved money back to stocks and cheered U.S. President Donald Trump's reversal of some of his heaviest import tariffs.

Benchmark 10-year yields JP10YT=RR went up 10 basis points to 1.377% in morning trade. Futures 2JGBv1 fell nearly 1.3 points. The Nikkei .N225 stock index roared 8.6% higher.

Selling lifted two-year yields JP2YT=RR about half a basis point to 0.669% and at the super-long end, 30-year yields JP30YT=RR, which had shot to a 21-year high a day earlier were fairly steady at 2.7%. MKTS/GLOB

Overnight Trump announced a 90-day pause on duties imposed on many countries though he left levies on China and a 10% blanket duty on almost all imports. And the reversal did not appear to include winding back auto, steel and aluminium taxes.

Analysts said the moves and mood in the JGB market were a far cry from a day earlier when long bonds were being dumped in a near panic as investors liquidated just about everything.

"At the super-long end, it's a little bit more relieved today," said Nomura strategist Naka Matsuzawa.

Wednesday had been an historic day in U.S. and global bond markets as the traditionally safe assets were sent into a tailspin as hedge funds unwound leveraged bets in bonds and investors scrambled for cash above all.

That hit Japan especially hard as the sudden steepening of the yield curve caught out markets that were positioned for flattening as Japan raises short-term rates, said Kentaro Hatono, head of global fixed income, Asset Management One.

On Thursday, the gap between two-year and 10-year yields JP2JP10=RR narrowed very slightly, and the gap between two-year and 30-year yields JP2JP30=RR narrowed by nearly 15 basis points.