TOKYO, July 10 (Reuters) - Japanese government bond (JGB)

yields fell sharply after the country's finance minister said

the government would encourage domestic pension funds to buy

more Japanese financial assets.

Here are a few details:

* The benchmark 10-year JGB yield fell 7.5

bps to 2.8%. The 20-year JGB yield fell 8 bps to

3.785%. Yields move inversely to prices.

* Japan's finance minister Satsuki Katayama said on Friday

the nation would seek measures to encourage Japan's Government

Pension Investment Fund (GPIF) and other pension funds to boost

investments in Japanese financial assets.

* The yields were on the rise until the previous session as

investors weighed fiscal expansion and ongoing inflation after

Japan disclosed plans to spend more than 370 trillion yen ($2.28

trillion) in combined public and private investment through

fiscal 2040.