EURO GOVT-Bund futures jump out of trading range

LONDON Nov 26 (Reuters) - Euro zone government bond futures hit their highest level since late April on Thursday, breaking out of the trading range that has been in place since June on ongoing risk aversion on debt problems in Dubai

"The Dubai story is weighing heavily on stock markets and people are looking to safe-havens so there's some flight to quality again," said Charles Berry, a trader at LBBW.

"German government Bunds are outperforming and the non-core government bonds are also under fire especially Greece."

Bund futures hit a session high of 123.26, 61 basis points higher on the day, after stops were triggered at 123.12, the top of the long-standing trading range.

"The all important 123.05/123.12 resistance area...is the 'line in the sand' for bears and a close above this level would be very bullish suggesting an extension to the 124.50 area is possible longer term," said Nomura rate strategist Charles Diebel.

"Admittedly it would count for more if such a break were confirmed on heavy volume," he added.

U.S. markets were closed for the Thanksgiving holiday, meaning trading volumes were supressed. ((Reporting by Kirsten Donovan and Emelia Sithole-Matarise; kirsten.donovan.reuters.com@reuters.net, +44 20 7542 8675))