Tokyo, Feb 28 - Japanese government bond (JGB) prices

rose on Friday as investors sought safe-haven assets amid slumps

in equities, while slower inflation growth in Japan's capital

eased bets on the Bank of Japan's aggressive rate hike bets.

The 10-year JGB yield fell 2 basis points

to 1.370%. The two-year JGB yield fell 2 bps to

0.805% and the five-year yield fell 3 bps to

1.005%.

Yields fall when bond prices rise.

"The global market turned into risk-off mode, which prompted

investors to buy JGBs," said Katsutoshi Inadome, senior

strategist at Sumitomo Mitsui Trust Asset Management.

U.S. Treasury 10-year yield fell to a more than

two-month low of 4.22% in Asia trade.

Japan's Nikkei share average fell to a five-month

low on Friday as chip-related shares tumbled.

"Also, worries that the BOJ would raise interest rates

faster receded after the market witnessed a slower-than-expected

growth of prices in Tokyo."

Core consumer prices in Japan's capital rose 2.2% in

February from a year earlier, slower than a median market

forecast of 2.3% and a 2.5% gain in January.

Steady growth in prices and wages in Japan drove speculation

that the BOJ may raise interest rates higher than the market had

expected, pushing JGB yields to their more-than-a-decade-highs

last week.

BOJ's deputy governor Shinichi Uchida on Friday reiterated

the central bank's readiness to continue raising short-term

interest rates if economic and price developments move in line

with its projections.

The 20-year JGB yield fell 1 bp to 2.03%.

The 30-year JGB yield rose 0.5 bp 2.35% and

the 40-year JGB yield rose 3 bp 2.69%.