JGB futures rise on Treasuries, Nikkei

*JGBs attract safe-haven bids as Nikkei tumbles 1.9 percent

*Deterioration in business sentiment also supports JGBs

By Shinichi Saoshiro

TOKYO, June 23 (Reuters) - Japanese government bond futures rose on Monday, lifted by a rally in U.S. Treasuries late last week and a sharp slide in equities.

The Nikkei stock average .N225 fell 1.4 percent on Monday after rising oil prices prompted a sharp decline on Wall Street late last week.

JGBs also drew support from the results of the Ministry of Finance's corporate sentiment survey released on Monday, which showed the economic outlook clouding among Japan's big manufacturers.

According to the survey, large Japanese manufacturers had turned more pessimistic about business conditions in the April-June quarter compared with the previous quarter. [ID:nTKF003215]

"The survey was basically in line with the forecasts for the Bank of Japan's tankan released last week, so it will not cause a major shift in sentiment," said Tatsuo Ichikawa, fixed-income strategist at ABN AMRO Securities.

But the survey supported JGBs as it the did reveal how inflation was affecting corporate sentiment, he said.

September 10-year JGB futures rose 0.63 to 134.13 1JGBv1.

The benchmark 10-year yield JP10YTN=JBTCfell 4.5 basis points to 1.710 percent.

The five-year yield JP5YTN=JBTC dropped 5 basis points to 1.300 percent.

Treasuries soared on Friday, boosted by falling stocks and concerns about financial sector health. [US/]

(Editing by Sophie Hardach)