JGBs sag as market braces for new supply

TOKYO, June 1 (Reuters) - Japanese government bond prices slipped on Monday as the market braced for about 3.2 trillion yen ($25.80 billion) worth of supply hitting the market this week.

Japan's finance ministry will sell 2.4 trillion yen of 10-year JGBs on Tuesday and 800 billion yen of 30-year debt on Thursday, prompting dealers to sell in anticipation of an uptick in yields when new debt comes on to the market. That offset the influence of U.S. Treasury yields, which declined to multiple-week lows on Friday.

The benchmark 10-year JGB yield rose 1 basis point to 0.40 percent and the 30-year yield rose 1.5 basis points to 1.48 percent.

June 10-year JGB futures slipped 0.11 point to 147.52.

A regular debt-buying operation by the Bank of Japan, a part of its extensive quantitative easing scheme, helped limit JGB losses.

U.S. Treasury yields fell on Friday, with benchmark and long-dated U.S. yields hitting their lowest in more than three weeks, as data showed the world's largest economy contracted at a faster pace in the first quarter than initially estimated.

($1 = 124.0400 yen) (Reporting by Tokyo markets team; Editing by Shri Navaratnam)

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