The judge in Pathein said the broadcast was deemed slanderous to the servicemen of the Burmese army and their families.
In what defence lawyers said was a key ruling in favour of the two reporters, the judge accepted the testimony of Police Captain Moe Yan Naing.
The family has temporarily taken shelter in an apartment belonging to the policeman’s brother.
This latest hearing came a day after literary rights group PEN America announced it was presenting the Reuters reporters with its Freedom to Write Award.
Judge Ye Lwin told reporters Wa Lone, 31, and Kyaw Soe Oo, 27, that they were ineligible for bail under the terms of the colonial-era law.
“Our media outlet takes sole responsibility for the publication of each article,” said Myo Aung. “As editor-in-chief of Tanintharyi Weekly, it is I who will face any legal proceedings.”