Japan 40-year govt bond auction draws strong demand; BID-COVER RATIO 2.70 vs
2.54 prior and 12-month avg 2.47; winning yield 3.84% vs 3.6% prior; 40-year
yield 4.09%, below this month's 4.355% peak. TAKAICHI says government will fund
supplementary budget without increasing calendar-year govt bond issuance, easing
supply concerns. KATAYAMA says about $3.2 bln of contingency funds will be used
this fiscal year to subsidize utility spending.