JGBs stabilize on bargain hunting, BOJ's buying operation

TOKYO, July 3 (Reuters) - Japanese government bond prices stabilized on Monday on bargain hunting following last week's steep fall and the Bank of Japan's regular debt-purchasing operation.

The two- and five-year JGB yields were both unchanged at minus 0.120 percent and minus 0.070 percent , respectively.

The benchmark 10-year yield dipped 0.5 basis point to 0.080 percent after rising to a 3-1/2-month high of 0.085 percent late last week as the JGB market tracked a broad rise in yields by its global peers.

September 10-year futures edged up 0.04 point to 150.15 after shedding about 0.30 point on Friday.

The BOJ on Monday offered to buy a total of 300 billion yen ($2.67 billion) of JGBs with remaining maturities of 10-years or more.

The bond market showed little reaction to Japanese Prime Minister Shinzo Abe's Liberal Democratic Party suffering a historic defeat in an election in the capital Tokyo on Sunday, signaling potential trouble ahead for the premier. ($1 = 112.4100 yen) (Reporting by the Tokyo markets team; Editing by Sunil Nair)