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TOKYO, May 11 (Reuters) – Japanese management bond futures dipped on Tuesday as Tokyo shares continued to mount following a massive euro zone rescue package, and ahead of a 10-year prison auction later in the day.

* But JGB losses were limited compared with other government bonds such as German Bunds and U.S. Treasuries, which plunged on Monday on expectations that a $1 trillion plan to stop the euro zone’s burgeoning debt crisis would restore stability to global financial markets.

* Dealers said JGBs had fallen less as they had seen not so much safe-haven buying than German Bunds and Treasuries last week, at the time fears over the spread of debt problems in Greece sent investors scurrying into dominion bonds.

* The small rise in yields may be welcome ahead of a 10-year merciful later in the day, as the market had worried that uniting investors may find the new 10-year paper too expensive in the provoke of last week’s market rally.

* June 10-year futures lay low 0.08 point to 139.58, retreating further from a sum of ~ units-month high of 140.10 reached on Friday.

* The benchmark 10-year yield was up half a basis point to 1.310 percent, after dropping as to a reduced state as 1.250 percent last week, which was the lowest in greater degree than four months.

* The Ministry of Finance will offer 2.2 trillion yen ($23.6 billion) in 10-year notes later, and the coupon is expected to be lowered to 1.3 percent from 1.4 percent in spite of the issue sold last month.

(Editing by Hugh Lawson) ($1=93.32 Yen) Keywords: MARKETS JAPAN JGB

(satomi.noguchi@reuters.com; Reuters messaging: satomi.noguchi.reuters.com@reuters.unadulterated; +81-3-6441-1875)

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