I read the Lord Buddha taught nihilism is better than eternalism.
In which Pali suttas is this teaching found?
Please provide quote the relevant suttas. Please do not give personal opinions.
Lord Buddha never said nihilism is better than eternalism.
It's actually the reverse as Nihilism comes under Niyata-micca ditti. It both blocks the path to heavens and blocks the path to Nibbana. That is why it is called Saggavarana, whereas eternalism is only called Maggavarana(blocks the path to Nibbana)
Buddha never said that nihilism is better than eternalism. What he said was that people who take Rupa as self is more sensible than the people who take Nama as self because the mind is changing faster than the matter.
There is in Dīghanakasutta, that is memorized by sariputta's students at 1st saṅgāyanā.
However, buddha neither taught to develop nihilism nor eternalism at all.
In AN 10.29, it said:
(8) “Bhikkhus, of the speculative views held by outsiders, this is the foremost, namely: ‘I might not be and it might not be mine; I shall not be, and it will not be mine.’ For it can be expected that one who holds such a view will not be unrepelled by existence and will not be repelled by the cessation of existence. There are beings who hold such a view
In Iti 49, it is said:
And how, bhikkhus, do some hold back? Devas and humans enjoy being, delight in being, are satisfied with being. When Dhamma is taught to them for the cessation of being, their minds do not enter into it or acquire confidence in it or settle upon it or become resolved upon it. Thus, bhikkhus, do some hold back.
"How, bhikkhus, do some overreach? Now some are troubled, ashamed, and disgusted by this very same being and they rejoice in (the idea of) non-being, asserting: 'In as much as this self, good sirs, when the body perishes at death, is annihilated and destroyed and does not exist after death — this is peaceful, this is excellent, this is reality!' Thus, bhikkhus, do some overreach.
In these suttas, the Lord Buddha teach nihilism is better than eternalism because eternalism is based in lust, bondage, delighting & clinging, which are dirty defilements (kilesa/กิเลส).