TOKYO, Jan 4 (Reuters) - Japanese government bond prices slipped on Wednesday, dragged down by lower U.S. Treasuries and caution ahead of the 10-year debt auction later in the week.
A rise in Nikkei on the first trading day of the year also weighed on JGBs as it reduced the appetite for safe-haven government bonds.
The benchmark 10-year JGB yield was up 2.5 basis points at 0.065 percent and the 30-year yield rose 3 basis points to 0.740 percent.
Japan’s finance ministry will auction 2.4 trillion yen ($20.34 billion) of 10-year JGBs on Thursday.
Treasury yields rose overnight after stronger-than-expected Institute for Supply Management (ISM) numbers which showed U.S. factory activity accelerated to a two-year high in December.
$1 = 118.0100 yen Reporting by the Tokyo markets team