JGBs capped by firmer Tokyo shares, weaker Treasuries

TOKYO, Oct 6 (Reuters) - Japanese government bond prices were capped on Monday by rebounding Tokyo shares and a weakening in Treasuries in the wake of robust U.S. nonfarm payrolls.

The benchmark 10-year JGB yield stood unchanged at 0.515 percent.

December 10-year JGB futures dipped 0.04 point to 145.92.

JGB losses were limited as strong demand underpinned the shorter-dated maturities. The Bank of Japan's purchases of shorter-dated debt, a part of its extensive quantitative easing programme, has tightened supply in those maturities.

"Losses in JGB futures are limited as supply in the shorter-dated maturities remains tight, exerting downward pressure on the rest of the yield curve," said a dealer at a domestic bank.

Treasuries yields rose on Friday after data showed U.S. employers added 248,000 jobs to payrolls in September, much more than economists had expected.

Tokyo's Nikkei rose 1.2 percent, tracking a surge on Wall Street fuelled by the jobs data.

(Reporting by Shinichi Saoshiro and the Tokyo markets team; Editing by Richard Borsuk)