JGBs jump on safe-haven bids after Lehman collapse

* JGB futures jump by daily limit, 10-yr yield hits 5-mth low

* Futures match biggest ever one-day rise after Lehman

* Cash JGBs ease from day's highs on profit-taking

By Masayuki Kitano

TOKYO, Sept 16 (Reuters) - Japanese government bond futures soared by their daily limit of 3 full points on Tuesday and 10-year yields hit a five-month low on safe-haven buying in the wake of the collapse of Lehman Brothers.

Global stock markets and crude oil prices plunged on Monday after Lehman, crushed by losses from the U.S. mortgage crisis and unable to find a buyer, sought bankruptcy protection. [nN13574113]

"A pretty sharp increase in credit risk and worries about credit seems inevitable," said Naomi Hasegawa, senior fixed income strategist for Mitsubishi UFJ Securities.

Growing expectations that the U.S. Federal Reserve may lower interest rates at a policy meeting later on Tuesday were also giving a lift to JGBs and euroyen futures, Hasegawa said.

The Tokyo Stock Exchange (TSE) briefly halted trade in 10-year JGB futures after the lead December contract jumped by more than 2 points soon after the opening.

Futures quickly extended gains after trade was resumed, and the lead contract soared by its daily limit of 3 full points to 140.35 2JGBv1, which was set as the day's high under the TSE's trading rules.

It was the first time JGB futures hit their limit-high since April 1999, when the daily limit was 2 full points.

JGB futures later trimmed some of their gains and ended the day session at 139.45 for a gain of 2.10 points from Friday's close, matching their biggest ever one-day rise. Futures rose 2.10 point on Oct. 29, 1987, the TSE said.

Japanese financial markets were closed on Monday for a national holiday.

Both short- and long-term yields fell sharply. Cash bonds eased from their highs as players took profits from the jump.

The benchmark 10-year JGB yield briefly touched a five-month low of 1.375 percent JP10YTN=JBTC, before rising to 1.465 percent, down 6 basis points.

Two-year yields fell by as much as 12.5 basis points to a five-month low of 0.615 percent JP2YTN=JBTC, before rising to 0.710 percent for a drop of 3 basis points on the day.