TOKYO, Nov 8 (Reuters) - Japanese government bond (JGB)

yields declined on Friday, tracking their U.S. peers, while

investors looked to assess the domestic and global outlook at

the end of a volatile week.

The 10-year JGB yield declined 1 basis point

to 0.995%, while 10-year JGB futures rose 0.1 point to

143.62 yen.

U.S. Treasury yields dropped across the board on Thursday in

volatile trading after the Federal Reserve cut interest rates by

25 basis points.

"For now, large domestic JGB investors seem to be on the

sidelines to assess the situation," said Ryutaro Kimura, a fixed

income strategist at AXA Investment Managers.

The 10-year JGB yield had crossed 1% on Thursday for the

first time in more than three months, tracking a jump in U.S.

yields after Republican former President Donald Trump's victory

in the U.S. presidential race.

Trump's policies on restricting illegal immigration and

enacting new tariffs could boost inflation, but control of the

U.S. House of Representatives has yet to be called, which could

affect how easily he can enact his proposals.

Meanwhile, JGB investors are also weighing how a recent

shake-up in domestic politics could affect monetary and fiscal

policy going forward, said Kimura.

But market participants appear to be growing more convinced

after the U.S. election that the Bank of Japan will likely hike

rates in December or January, he said.

A dollar rally triggered by Trump's victory could heighten

pressure on the BOJ to raise rates to prevent the yen from

sliding back toward three-decade lows.

The two-year JGB yield, which corresponds more

closely with monetary policy expectations, was flat at a 16-year

high of 0.5%.

The five-year yield was also unchanged at

0.64%.

The 30-year JGB yield slid 1.5 bps to 2.235%.

The 20-year JGB yield was untraded as of 0540

GMT.

(Reporting by Brigid Riley; Editing by Varun H K)