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JGBs little moved ahead of Fed, 20-year auction

TOKYO, Dec 13 (Reuters) - Japanese government bond prices were little changed on Wednesday with most investors staying on the sidelines ahead of the U.S. Federal Reserve's policy announcements that could shed light on the pace of future U.S. rate hikes.

The U.S. rate and yield outlook has very strong impact on Japanese bonds, given that most Japanese investors have bought various U.S. bonds from Treasuries to mortgage bonds in recent years as alternatives to low-yielding JGBs.

The 10-year JGB yield ticked up 0.5 basis point to 0.045 percent, while the price of 10-year JGB futures were down 0.01 point at 150.91.

The 20-year yield ticked up 0.5 basis point to 0.565 percent ahead of an auction of 1.0 trillion yen 20-year JGBs on Thursday, while the 30-year JGB yield rose 0.5 basis point to 0.815 percent.

The 40-year yield dipped 0.5 basis point to 0.960 percent .

The Federal Reserve is widely expected to raise interest rates on Wednesday, but, more significantly, it may give its strongest hint yet on how the Trump administration's tax overhaul could affect the U.S. economy. (Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)