CORRECTED - CORRECTED-JGB futures hit 2-½ year high on stocks, Treasuries

(Corrects paragraph 7 to ...one-month ... not 2-½ year.)

By Satomi Noguchi

TOKYO, March 7 (Reuters) - Japanese government bond futures struck a 2-1/2-year high on Friday boosted by sharp gains in U.S. Treasuries on escalating credit worries and fears the U.S. economy could tip into a recession.

The lead futures contract jumped more than half a point as Tokyo shares tumbled and prompted investors to shift funds into safe-haven of the debt.

JGBs were also pushed up by mounting worries about U.S. credit market troubles and the health of financial sector that have been making waves in Japan, keeping two-year yen swap spreads near all-time high.

Investors flocked to the shorter-dated bonds as a safe place to park their funds, pushing the yield of the five-year notes down to a level not seen since November 2005.

"Demand for JGBs may be coming partly from investors who made losses in credit related investments and stocks," said a trader at a foreign securities house.

March 10-year futures 2JGBv1 rose 0.36 point to 139.25 after jumping as high as 139.50, their highest since September 2005.

The benchmark 10-year yield <JP10YTN=JBTC> fell 2 basis points to 1.335 percent and touched as low as 1.325 percent, in sight of a one-month low of 1.320 percent hit on Monday.