JGB yields fall to track U.S. Treasury yields lower

TOKYO, Oct 30 (Reuters) - Japanese government bond (JGB) yields fell on Wednesday, tracking U.S. Treasury yields lower, as the market awaited the outcome of the Bank of Japan's policy meeting.

The 10-year JGB yield fell 1 basis point (bp) to 0.96%. Benchmark 10-year JGB futures rose 0.14 yen to 143.99.

Benchmark 10-year U.S. Treasury yields hit a nearly four-month high on Tuesday on investor wariness to buy the debt before next week's U.S. presidential election, but dipped later in the day after a strong seven-year note auction.

"The JGB yields on mid-to-long term bonds fell as JGB futures rose after U.S. Treasury yields declined overnight," said Miki Den, senior Japan rate strategist at SMBC Nikko Securities.

The five-year yield fell 1.5 bps to 0.58% and the two-year JGB yield fell 0.5 bp to 0.445%.

The BOJ will conclude a two-day policy meeting on Thursday, and the market widely expects that it will keep its policy unchanged.

The 20-year JGB yield rose 1 bp to 1.815% and the 30-year JGB yield rose 1.5 bps to 2.22%.

"Yields on super-long dated bonds are on an upward trend as the market is concerned about the fiscal expansion. Whichever parties will form a new coalition, the government spending is seen expanding," said Den.

Japan's ruling coalition's failure to retain a majority in Sunday's lower house elections will likely force the Liberal Democratic Party to court smaller opposition parties such as the Democratic Party for the People (DPP) to stay in power.

The 40-year JGBs were not traded.

(Reporting by Junko Fujita; Editing by Mrigank Dhaniwala)