JGBs track Treasuries higher, falling stocks help

TOKYO, Oct 17 (Reuters) - Japanese government bonds rose on Wednesday, helped by gains in U.S. Treasuries overnight and falling Tokyo shares.

A strong 30-year debt auction on Tuesday added a boost to JGBs as it showed solid investor demand for super-long bonds -- those with maturities of more than 10 years -- and encouraged dealer buying of the long-dated bonds.

Treasuries rose on Tuesday as credit market worries and sliding Wall Street stocks prompted investors to seek safety.

Disappointing earnings and outlooks from banks such as Wells Fargo & Co (WFC.N: Quote, Profile, Research, Stock Buzz) suggested an extended period of credit shortages, feeding the safe-haven bid for U.S. government bonds.

"The strong 30-year JGB auction yesterday provided comfort to market players who were anxious about investor demand," bond strategists at Shinko Securities said in a note to clients.

December 10-year futures 2JGBv1 rose 0.27 point to 135.00, hitting their highest levels in two weeks and pulling further away from the two-month low of 134.14 struck last week.

The benchmark 10-year yield <JP10YTN=JBTC> dipped 2 basis points to 1.675 percent, touching its lowest level since Oct. 3 and staying below a two-month high of 1.745 percent struck last week.

The new 27th 30-year bond <JP30YTN=JBTC> auctioned the previous day had not yet traded in early dealings, but the yield of 26th 30-year bond was at 2.455 percent in late trade on Tuesday, down 5.5 basis points on the day.

The five-year yield <JP5YTN=JBTC> slipped 2 basis points to 1.210 percent.