TOKYO, Oct 11 (Reuters) - Japanese government bond (JGB)

yields declined on Friday, tracking U.S. Treasury yields, and

easing from multi-week highs hit in the previous session.

Data on Thursday showed an increase in U.S. weekly jobless

claims and the smallest annual jump in inflation since February

2021, suggesting the Federal Reserve is on track to cut interest

rates next month.

U.S. Treasury yields were mixed overnight following the

data, but trended lower during Asian trading hours.

The 10-year JGB yield slipped 1 basis point

to rest at 0.945%, off Thursday's five-week high of 0.955%.

JGB yields touched their highest since early August this

week, following their U.S. peers, as bets shifted toward a more

gradual pace of Fed rate cuts following a blowout jobs report

last Friday.

Japan's improving economic conditions and receding U.S.

recession worries are likely to help bring prospects of a

December or January rate hike back into view, even as the

nation's new government complicates the politics around monetary

policy.

"We believe yields will ultimately be prone to strengthening

upward pressure, especially in the short/medium-term sectors, on

a revival of BOJ rate hike expectations," Barclays analysts said

in a note.

A further rise in yields may be limited for now, however,

due to uncertainty ahead of a domestic general election

scheduled for Oct. 27, they said.

New Japanese premier Shigeru Ishiba, known for being a

critic of easy monetary policy, stunned markets earlier this

month when he said Japan was not ready for further rate hikes.

The 20-year JGB yield and 30-year yield