JGBs dip on tepid liquidity-enhancing auction

TOKYO, Feb 16 (Reuters) - Japanese government bond prices dipped on Thursday as a subdued liquidity-enhancing auction dented investor sentiment, with the market also continuing to feel pressure from the recent retreat by U.S. Treasuries.

Yields rose as an auction by the finance ministry to sell 400 billion yen ($3.51 billion) of off-the-run JGBs, intended to enhance market liquidity, drew tepid demand.

The benchmark 10-year JGB yield rose 1 basis point to 0.095 percent and the 30-year yield climbed 1.5 basis points to 0.905 percent.

The 30-year yield was within the reach of a one-year high of 0.915 percent hit earlier this month.

Longer-dated yields have edged up recently as investors have been pondering how far the BOJ would go to attain its stated aims since last September, when the central bank adopted its "yield curve control" policy, under which it pledged to keep the 10-year yield around zero percent.

($1 = 113.8700 yen) (Reporting by the Tokyo markets team; Editing by Sherry Jacob-Phillips)