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)
