TOKYO Nov 29 (Reuters) - Japanese government bond futures on Monday bounced as bargain hunting emerged after the contracts hit a five-month low, although caution ahead of a 10-year debt sale later in the week limited gains.
* December 10-year futures 2JGBv1 gained 0.10 point to 140.67 after falling to a five-month low of 140.41 early in the session. Bargain hunters tiptoed in, encouraged by a bounce in U.S. Treasuries on Friday and after the Nikkei .N225 failed to mark a five-month high, market players said.
* JGBs still face many obstacles, such as an ebb in calls for further central-bank easing with stocks on a bull run and as the yen continues to pull away from a 15-year high against the dollar.
* The benchmark 10-year yield JP10YTN=JBTC was unchanged at 1.185 percent, after briefly touching 1.190 percent to match a 2-½ month high hit on Friday.
* Caution ahead of Thursday's 10-year JGB auction was expected to keep a firm lid on the bond market. The 10-year yield could rise above the 1.200 percent threshold for the first time in five months if the auction is poorly received, market players say.
* The 20-year yield JP20YTN=JBTC rose a basis point to 1.950 percent.
* Tokyo's Nikkei was up 0.4 percent after rising as much as 1.1 percent, coming within close distance of a five-month high hit last week. The dollar stood at 84.11 yen JPY= after touching a two-month high of 84.20 yen. [.T] [FRX/] (Reporting by Shinichi Saoshiro; Editing by Edwina Gibbs)
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