JGB futures rally as Tokyo shares slump

TOKYO, Oct 17 (Reuters) - Japanese government bond futures rallied 0.50 point from the previous day's close to a two-week high on Wednesday as Tokyo shares extended their losses.

December 10-year futures rose as much as 0.50 point to 134.23 2JGBv1, their highest level since Oct. 1, pulling further away from the two-month low of 134.14 hit last week.

Futures ended the morning session at 134.21, up 0.48 points on the day.

The benchmark 10-year yield <JP10YTN=JBTC> fell 3.5 basis points to 1.660 percent, its lowest level since Oct. 1.

The Nikkei share average .N225 fell 1 percent at the end of morning trade.