JGBs retreat on Nikkei rebound, upbeat data

* JGBs dip on Nikkei bounce, machinery orders spike

* Bargain hunters close in, trim JGB losses

* Superlong JGBs firm after US long bonds gain on oil

* May machinery orders beat forecasts, up 10.4% mth/mth

By Shinichi Saoshiro

TOKYO, July 9 (Reuters) - Japanese government bonds fell on Wednesday as Tokyo shares followed Wall Street higher, curbing demand for safe haven debt.

JGBs were also hit by an upbeat economic reading, as May machinery orders jumped 10.4 percent from the previous month, much higher than the median forecast for a 1.1 percent rise.

The bond market dropped in a knee-jerk reaction to the data, with September futures dipping as much as half a point, but bargain hunting soon trimmed losses.

Market watchers said investors are willing to buy JGBs on dips as not all were able to keep pace with Tuesday's bond rally, when soft stocks and good results of a five-year auction triggered a full point surge in futures and an 8 basis point drop in the benchmark yield.