JGB yields fall after U.S. bond yields steady

TOKYO, Jan 21 (Reuters) - Japanese government bond (JGB) yields fell on Friday after U.S. Treasury yields steadied, with weak equities and moderately solid outcome of a government auction supporting sentiment.

The 10-year JGB yield fell one basis point to 0.130% and the 20-year JGB yield fell one basis point to 0.525%.

U.S. Treasury yields were steady overnight after a rapid sell-off that sent yields to two-year highs drew buying interest.

Japan's Nikkei index fell as much as 2% earlier in the session as technology heavyweights tracked Nasdaq's overnight loss.

The Ministry of Finance's liquidity auction received bids worth 3.51 times the amount available, slightly higher than a bid-cover ratio of 3.50 at the previous auction, which market participants said was reasonably solid.

The 30-year JGB yield was flat at 0.715% and the 40-year JGB yield fell 0.5 basis point to 0.755%.

The two-year JGB yield was flat at minus 0.075% and the five-year yield fell one bps to minus 0.040%.

Benchmark 10-year JGB futures rose 0.19 point to 151.03, with a trading volume of 23,880 lots.

(Reporting by Tokyo markets team; editing by Uttaresh.V)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.