TOKYO, May 10 (Reuters) - Japanese government bonds dipped on Monday as Tokyo shares climbed amid moves by euro zone ministers and the European Central Bank to ease tensions caused by the euro zone debt crisis, spurring some selling of safe-haven debt.
Caution over bond prices rising too high before a 10-year debt auction on Tuesday also pulled JGB futures down further from two-month highs and lifted the yield on the benchmark 10-year bond.
The Bank of Japan offered to supply 2 trillion yen ($22 billion) to the money market on a same-day basis, the second such action following Friday's offer. It was the first time the BOJ offered same-day fund operations on consecutive business days since October 2008.
Monday's operation drew only 694.5 billion yen in bids, far below the 2 trillion yen offered, showing demand for short-term yen funds remains tepid after a similar lukewarm reception on Friday.
But the central bank's action is seen as part of global efforts to calm the market amid concerns about the spread of Greece's debt crisis into other regions, which has rattled global markets.
The BOJ said it would hold an emergency board meeting at 0200 GMT on Monday to consider reestablishing a dollar swap framework, following major global central banks' move to re-establish dollar swap facilities used during the 2007-2008 financial crisis to help ease strains on financial markets.
June 10-year futures fell 0.28 point to 139.63, falling further from a two-month high of 140.10 hit on Friday.
The 10-year yield rose 2.5 basis points to 1.300 percent , above last week's 1.250 percent that was the lowest level since late December.
The European Union agreed on a 500 billion euro ($670 billion) emergency fund in the early hours of Monday to protect highly indebted eurozone countries from the 'wolfpack' of financial markets.
(Additional reporting by Yoshiyasu Shida; Editing by Chris Gallagher) Keywords: MARKETS JAPAN JGB (firstname.lastname@example.org; Reuters messaging: email@example.com; +81-3-6441-1875) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.