TREASURIES-Treasury yields hover near 2-1/2 month highs

LONDON, Sept 24 (Reuters) - Benchmark 10-year U.S. Treasury yields edged up on Friday to hover near their highest levels in over 2-1/2 months in a sign of investor unease that major central banks are moving towards tightening monetary policy.

In early London trade, 10-year Treasury yields were up 2 basis points at around 1.43%, having hit a fresh high at 1.45%.

The moves were modest in contrast to Europe, where German, Italian and British yields all hit new highs a day after hawkish signals from central bankers .

The U.S. Federal Reserve on Wednesday said it would reduce its monthly bond purchases "soon", and half of the Fed's policymakers projected borrowing costs will need to rise in 2022.

U.S. 10-year bond yields are up around 6 bps this week and set for their biggest weekly jump in four weeks.

"I was surprised to see a modest reaction after the Fed, but now markets have had time to digest the news the overall moves have been sizeable, and there have been other things happening," said Jan von Gerich, chief analyst at Nordea, referring to action from other major central banks on Thursday.

"Central bankers have been talking in unison about inflation being transitory but if even the Fed is softening its stance on this, then that could also be the case elsewhere." (Reporting by Dhara Ranasinghe; Editing by Jan Harvey)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.