TOKYO, Oct 17 (Reuters) - Japan's 10-year government

bond (JGB) yield touched a one-month low on Friday, tracking

U.S. Treasury yields, which fell overnight on concerns over

trade tensions between the U.S. and China and credit market

worries.

The 10-year JGB yield fell as much as 4 basis

points (bps) to 1.615%, its lowest level since September 19, and

was last down 3 bps at 1.62%.

Firm outcome of the liquidity enhancement auction for the

bonds with maturities of between over five- and 15.5 years also

supported sentiment, said Katsutoshi Inadome, a senior

strategist at Sumitomo Mitsui Trust Asset Management.

"The yields on super-long dated bonds may trade lower next

week as uncertainties over Japan's politics and finances have

eased," Inadome said.

The 20-year JGB yield fell 2.5 bps to 2.625%

and the 30-year JGB yield fell 1.5 bps to 3.105%.

Prospects of Liberal Democratic Party (LDP) leader Sanae

Takaichi becoming the next prime minister increased after the

party has approached the opposition Japan Innovation Party,

known as Ishin, in a bid to secure a majority vote and expand

its coalition.

Yields on shorter-dated bonds also fell, with the two-year

JGB yield slipping 2 bps to 0.895%. The five-year

yield fell 3 bps to 1.175%.