TOKYO, July 4 (Reuters) - Japan's 10-year government

bonds (JGBs) inched down on Friday, tracking declines in U.S.

Treasuries after strong U.S. jobs data bolstered the case for

the Federal Reserve to keep interest rates on hold.

The 10-year JGB yield rose 0.5 basis point

(bp) to 1.445%.

Yields move inversely to bond prices.

U.S. Treasury yields advanced on Thursday after data showed

the world's largest economy created more jobs than expected last

month.

"Japan's yields tracked U.S. Treasury yields higher, but the

moves were limited amid a lack of market-moving cues ahead of

the weekend," said Takahiro Otsuka, a senior fixed income

strategist at Mitsubishi UFJ Morgan Stanley Securities.

The five-year yield was flat at 0.985%, after

hitting 1% earlier in the session. The two-year JGB yield

was flat at 0.745%.

The 20-year JGB yield was flat at 2.36%.

The 30-year JGB yield edged up 0.5 bp to

2.86%. The yield jumped 6 bps in the previous session after a

weak auction of the bonds.

The 40-year JGB yield was flat at 3.125%.

The 10-year JGB futures were 0.07 point higher at

139.94.