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TOKYO, May 29 (Reuters) - Japanese government bond prices slipped on Monday as traders made room for an auction of two-year JGBs the following day, with market showing limited reaction to North Korea's firing of a short-range missile.
The 10-year JGB yield was flat at 0.035 percent , while the two-year yield edged up 0.5 basis point at minus 0.165 percent.
Buyers were cautious as the Ministry of Finance will auction 2.2 trillion yen of two-year bonds on Tuesday.
North Korea fired at least one short-range ballistic missile on Monday that landed in the sea off its east coast, the latest in a fast-paced series of missile tests defying world pressure, but there were no flight-to-quality buying in bonds.
The price of 10-year JGB futures slipped 0.02 point to 150.63. Trade volume was 11,085, the lowest in almost two months, due partly to market holidays in London and New York. (Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)