TOKYO, Aug 4 (Reuters) - Japanese government bonds

surged on Monday, sending benchmark yields down by the most in

more than three months, as concerns over the economic cost of a

global trade war boosted demand for safer assets.

JGB yields followed a sharp decline in U.S. Treasury yields

on Friday after data showed the world's largest economy created

fewer jobs than expected, increasing odds of the Federal Reserve

cutting interest rates at its September meeting.

And tariffs that U.S. President Donald Trump imposed last

week on dozens of countries are likely to stay in place rather

than be cut as part of continuing negotiations, Trade

Representative Jamieson Greer said.

The 10-year JGB yield fell 6.5 basis points

(bps) to 1.485%, set for the sharpest one-day decline since

April 16. The five-year yield fell 7.5 bps to

1.005%.

"JGB yields are tracking declines of U.S. Treasury yields,"

said Keisuke Tsuruta, a senior fixed income strategist at

Mitsubishi UFJ Morgan Stanley Securities. "The declines in

yields were also supported by expectations that the Bank of

Japan may delay interest rate hikes due to a possible slowdown

of the U.S. economy."

The U.S. Labor Department reported that the U.S. added

73,000 nonfarm payrolls last month, below economists'

expectations for 110,000. June's job growth was revised sharply

lower to 14,000 from 147,000.

Ahead of a Friday deadline, Trump set rates including a 35%

duty on many goods from Canada, 50% for Brazil, 25% for India,

20% for Taiwan and 39% for Switzerland.

On Thursday, the BOJ kept its short-term rates steady at

0.5%, and subsequent comments by Governor Kazuo Ueda were seen

as dovish, as he noted continuing risks to the economic outlook.