TOKYO, Aug 5 (Reuters) - Japanese government bonds

(JGBs) rose on Tuesday as investors bought the debt to cover

short positions after prices rose sharply in the previous

session.

The 10-year JGB yield fell four basis points

(bps) to 1.465% even as an auction on the day for bonds with the

same maturity witnessed a weak outcome.

Yields move inversely to bond prices.

"The yields fell as market players bought back bonds after

the yields tanked in the previous session," said Miki Den, a

senior Japan rate strategist at SMBC Nikko Securities.

JGB yields fell the most in more than three months on Monday

after data showed the U.S. economy created fewer jobs than

expected, increasing the odds of the Federal Reserve cutting

interest rates at its September meeting.

Tuesday's 10-year bond auction was weak, as the lowest

accepted price was lower than the market forecast, and the tail,

or the gap between the lowest and average price, widened to 0.14

yen from 0.03 yen at the auction last month.

At the latest auction, unidentified buyers bought a

significant portion of the debt, suggesting there was a strong

demand from pension funds which wanted to rebalance their

portfolios, said Den.

Yields on bonds with other maturities also fell to track the

decline of U.S. Treasury yields.

The two-year JGB yield fell 1 bp to 0.75%. The

five-year yield fell 2 bps to 1.005%.

The 20-year JGB yield fell 4 bps to 2.51%.

The 30-year and 40-year bonds were not traded as of 0448

GMT.