(Updates yields, adds auction result in headline, 1st paragraph,

3rd bullet, adds analyst comment in 5th bullet.)

By Junko Fujita and Rocky Swift

TOKYO, July 7 (Reuters) - Japanese government bond yields

fell from multi-decade highs on Tuesday after a sale of

super-long-term debt showed strong demand.

Here are a few details:

* The benchmark 10-year JGB yield eased 2.5

basis points to 2.805%, pulling back from the highest level

since October 1996. Yields move inversely to bond prices.

* The 20-year yield dropped 4 bps to 3.765%,

down from the highest level in data going back to 1999. The

30-year yield slid 7 bps to 4.005%.

* The Ministry of Finance sold about 600 billion yen ($3.70

billion) in 30-year JGBs on Tuesday. The bid-to-cover ratio, a

measure of demand, rose to 4.55, the highest since May 2019.

* JGB yields have been on the rise this month, particularly

in the long and super-long end, driven by inflation concerns, a

sharply weaker yen and worries about fiscal expansion.

* "The auction was strong because the level of the yield was

high," said Yuki Kimura, a bond strategist at Okasan Securities.

"There is a certain demand for super-long bonds when their

yields rise. But concerns about the expansion of government

spending have not been removed, so the yields are not going to

keep falling."

* The two-year yield, the one most sensitive

to Bank of Japan policy rates, eased 0.5 bp to 1.385%, while the

five-year yield decreased 0.5 bp to 1.935%.

($1 = 162.1500 yen)