UPDATE 1-Japan's Fujii repeats will limit bond issuance

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* Fujii:Will try to keep 2010/11 bond issuance below Y44 trln

* Suggests BOJ may be taking too rosey view on economy

* Says will not attend G20 meeting to focus on parliament

TOKYO, Oct 27 (Reuters) - Japan's finance minister said the government would consider the bond market carefully when mulling its new issuance plans, adding that new JGB issuance in fiscal 2010/11 must stay below 44 trillion yen.

The benchmark 10-year Japanese government bond yield JP10YTN=JBTC is hovering near a 2-½ month high partly on concerns about the amount of bonds the new Democratic Party-led government plans to issue to pay for its ambitious spending plans.

Hirohisa Fujii also suggested that the Bank of Japan may be taking too rosey a view of the economy, saying that the central bank was looking at things "in its own way".

The BOJ has come under pressure from some cabinet ministers who worry that a quick end to the central bank's emergency steps to support corporate funding would hurt the fragile economy, just now emerging from its deepest recession in 60 years.

"The BOJ has repeatedly said the economy is getting better but they are dealing with different people," Fujii said.

"I believe everyone here is examining the situation in a more down to earth way," Fujii told a meeting of the heads of regional branches of the ministry.

Japan's new government has repeatedly said it would seek to limit its debt issuance in the fiscal year starting next April to below 44 trillion yen, the amount planned in this year's budget, which was compiled by the former government it ousted in an Aug. 30 election.

But market players are not convinced that is possible, given a likely plunge in tax revenues as well as the government's plans for additional spending of about 7 trillion yen for policies such as child benefits and cheaper highway tolls.

"The issue of spending is important, but the condition of the bond markets is also important, so we're attaching the utmost importance to it," Fujii told a news conference.

The Bank of Japan will consider whether to scrap some of its corporate funding support measures when its policy board meets on Friday. The measures are currently due to expire in December.

Analysts generally expect the central bank to let some steps expire by the end of the year, but whether the BOJ will let itself be swayed by government pressure is an open question.

Government jawboning has been known to prompt the BOJ to act in the past just to demonstrate its independence.