SINGAPORE, Aug 2 (Reuters) - Japanese government bond

yields fell on Friday to their lowest in six weeks, tracking

declines in U.S. Treasury yields, as weak U.S. economic data

stoked worries of a slowdown and cemented expectations of the

Federal Reserve cutting rates soon.

The 10-year JGB yield fell 7 basis points to

0.960%, its lowest since mid-June.

The 20-year JGB yield was 5 basis points

lower at 1.740%.

Data on Thursday showed further contraction in the U.S.

manufacturing sector and a decline in construction spending that

solidified a rate cut from the Fed in September.

That along with safe-haven flows into US Treasuries

following escalating geopolitical tensions in the Middle East

sent the yield on benchmark 10-year Treasuries to a

six-month low of 3.943%. Bond yields fall when prices rise.

Short-term Japanese government bond yields have been on the

rise after the Bank of Japan raised interest rates on Wednesday

for only the second time since 2007 and announced a halving of

its monthly bond buying.

On Friday, the five-year JGB yield fell 6

basis points to 0.59% but remained close to the 15-year high it

touched this week. The two-year yield fell 2 basis

points to 0.43%.