TOKYO, Aug 22 (Reuters) - Japanese 10-year government

bond yields rose to a fresh 17-year peak on Friday, tracking a

rise in U.S. Treasury yields as investors braced for a speech by

Federal Reserve Chair Jerome Powell at the U.S. central bank's

Jackson Hole symposium.

The 10-year JGB yield, which rises when the

bond price falls, added 1 basis point (bp) to 1.615%, the

highest level since October 2008.

More liquid 10-year JGB futures initially slipped

as much as 0.14 yen to 137.42 yen, a nearly one-month low,

before recovering to trade little changed, as of 0039 GMT.

U.S. 10-year Treasury yields climbed close to 4

bps to 4.332% on Thursday, as traders pared back bets on a

September interest rate cut by the Fed.

Analysts said market players took cues from purchasing

managers surveys that suggested U.S. business activity and

hiring have picked up pace appreciably this month, rather than a

separate report showing the biggest jump in about three months

for new jobless claims.

Market bets on a quarter-point Fed cut next month last stood

at 75%, down from 80% a day earlier, according to LSEG data.

Powell speaks later on Friday, the second day of the

three-day Jackson Hole gathering. Fed speakers on day 1 overall

struck moderately hawkish stances, with Cleveland Fed President

Beth Hammack saying she sees no case for imminent policy easing,

and Chicago Fed President Austan Goolsbee flagged services

inflation as giving him pause on lowering rates.

Japan's 20-year sovereign debt yield rose 1.5

bps to 2.655%, matching Thursday's 25-year peak.

The 30-year JGB yield added 1.5 bps to

3.195%, putting it just 0.5 bp below its record high from July

15.

The two-year yield was flat at 0.855%. The

five-year JGB was yet to trade on the day.