TOKYO, June 8 (Reuters) - Japanese government bond prices dipped on Monday after U.S. payrolls data strengthened the case for an early rate hike by the Federal Reserve and as market players braced for auctions of long-dated bonds planned this week.
The price of 10-year JGB futures ticked down 0.06 point to 146.95 while the yield on the 10-year JGB yield rose 1.0 basis point to 0.490 percent, near a 6 1/2-month high of 0.505 percent touched on Thursday.
Much better-than-expected U.S. employment data published on Friday fanned expectations that Federal Reserve could start raising interest rates as early as in September.
Japanese bond investors were also cautious ahead of two auctions of long-dated JGBs this week, with immediate focus on Tuesday’s liquidity enhancing auction, where the government re-offers some existing issues.
The MOF plans to sell 300 billion yen of paper with 15 to 39 years left to maturity on Tuesday.
The 30-year JGB yield rose 1.5 basis point to 1.535 percent , near a three-month high of 1.550 percent set last Thursday.
The market showed no reaction to data that showed Japan’s economy expanded more than initially expected in January-March as companies ramped up capital investment. (Reporting by Tokyo Markets Team; Editing by Simon Cameron-Moore)