(Adds Trump comments, updates prices) * Contradictory statements on U.S., China tariff roll back * U.S. bond yields move higher in line with European debt * Consumer price data next week next major economic release By Karen Brettell NEW YORK, Nov 8 (Reuters) - U.S. Treasury yields held just below three-month highs on Friday as investors evaluated the likelihood that the United States and China would reach a deal to roll back tariffs, as officials made contradictory statements on the issue. China and the United States have agreed to roll back tariffs on each others' goods in a "phase one" trade deal if it is completed, officials from both sides said on Thursday. U.S. President Donald Trump said on Friday, however, he has not agreed to rolling back tariffs sought by China, sparking fresh doubts about when the world's two largest economies may end a 16-month trade war that has slowed global growth. “It’s still unclear; we don’t have a lot of clarity on what’s actually going to happen,” said Tom di Galoma, a managing director at Seaport Global Holdings in New York. Benchmark 10-year note yields rose as high as 1.973% on Thursday on optimism a deal would be reached, the highest since Aug. 1. On Friday, the yields fell to 1.898% on Trump's comments, before rising back to 1.930%. U.S. government bond yields are also moving in sympathy with European government bonds, which have sold off on trade optimism and on expectations that Britain will exit the European Union after it holds an election in December. “The selling pressure is coming on the back of the expectation that Brexit will happen one way or the other,” di Galoma said. Buoyant stock markets have also reduced demand for bonds. Investors are also watching economic data for further clues on whether the Federal Reserve is likely to make further interest rate cuts. The U.S. central bank cut rates last week for the third time this year and indicated that additional rate decreases may be unlikely in the near term. The next major U.S. economic release will be consumer price data for October, which will be released on Wednesday. (Reporting by Karen Brettell; editing by Jonathan Oatis and Cynthia Osterman) )
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