Japan's 10-year yields hit 17-year peak ahead of Powell speech

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 JP10YTN=JBTC, 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 2JGBv1 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 US10YT=RR 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 JP20YTN=JBTC rose 1.5 bps to 2.655%, matching Thursday's 25-year peak.

The 30-year JGB yield JP30YTN=JBTC added 1.5 bps to 3.195%, putting it just 0.5 bp below its record high from July 15.

The two-year yield JP2YTN=JBTC was flat at 0.855%. The five-year JGB JP5YTN=JBTC was yet to trade on the day.