TOKYO, July 1 (Reuters) - Japanese government bond (JGB) yields fell on Thursday after an auction of 10-year notes received solid demand. The 10-year JGB yield fell 1.5 basis points to 0.040%, and benchmark 10-year JGB futures rose 0.12 point to 151.81, with a trading volume of 17,766 lots. The government auction for 10-year bonds received bids worth 3.54 times the bonds sold, higher than the bid-cover-ratio of 2.94 at the previous auction. The 20-year JGB yield fell one basis point to 0.430% and the 30-year JGB yield fell 0.5 basis point to 0.680%. The 40-year JGB yield fell 0.5 basis point to 0.760%. The five-year yield fell 0.5 basis point to minus 0.110%. At the short end, the two-year JGB yield was flat at minus 0.115%. (Reporting by Tokyo markets team) Our Standards: The Thomson Reuters Trust Principles.