*JGBs weighed by position adjustments for 10-year auction

*U.S. jobless data, ECB meeting also cap bonds

*Losses limited by bearish stocks, Nikkei down 0.2%

By Shinichi Saoshiro

TOKYO, July 3 (Reuters) - Japanese government bonds edged lower on Thursday as caution prevailed before the results of a key auction and potential market-moving events later in the day.

Bond dealers braced for a 1.9 trillion yen ($17.95 billion) auction of 10-year paper, with results due at 0345 GMT.

U.S. non-farm payrolls data, due at 1230 GMT, and a meeting of the European Central Bank slated for Thursday also kept participants wary.

Market watchers said hedge selling ahead of the 10-year tender was nudging yields higher.

"The auction is expected to be a dealer-led affair as investors are likely to weigh the outcome of the U.S. jobless data and the ECB meeting first," said Tatsuo Ichikawa, fixed-income strategist at ABN AMRO Securities.