TREASURIES-Bonds surge as economic worries spur safe-haven bid

*Safe-haven bid again supporting Treasuries prices

*Benchmark yields hit the lowest in over 50 years

*10-year yield sheds a full percentage point in November

*For the latest market news, please click on FINEWS (Updates prices)

By Chris Reese

NEW YORK, Nov 28 (Reuters) - U.S. Treasuries surged on Friday, taking benchmark yields to the lowest in at least 50 years as continued worries about the shrinking economy spurred investors to seek the safety of government debt.

Investors were also buying to square up their portfolios at month end, analysts said, and trade volume was thin the day after the U.S. Thanksgiving Day holiday.

Benchmark 10-year Treasury notes US10YT=RR traded 1-22/32 higher in price for a yield of 2.92 percent. The benchmark yield, which moves inversely to prices, fell to as low as 2.82 percent on Friday, marking the lowest in at least five decades, according to Reuters data.

"You are still seeing the recession fear," said Kim Rupert, managing director of global fixed-income analysis at Action Economics in San Francisco. "Fear is the overriding factor."

Benchmark yields in November experienced their biggest monthly fall in at least 12 years, according to Reuters data, as investors have stampeded into lower-risk investments on signs of ever-deepening economic distress. The 10-year yield has shed more than a full percentage point since the end of October.

"Buying (in the long end) that closed 10-year (yields) to the lowest close ever Wednesday continues today," said Andrew Brenner, senior vice president at MF Global in New York.

Two-year Treasury notes US2YT=RR on Friday traded 12/32 higher in price for a yield of 1.01 percent, just above the Federal Reserve's target rate for overnight lending between banks of 1 percent. The 2-year yield has lost over half of a percentage point from the 1.57 percent level at the end of October.

The price movement on Friday was exaggerated by the thin trading volumes, analysts said.

"It is very, very quiet -- most crews are less than half staffed," said Mary Ann Hurley, vice president of fixed-income trading at D.A. Davidson & Co in Seattle.

Thirty-year bonds US30YT=RR traded over 3 points higher in price for a yield of 3.44 percent.

Continuing news of the attacks this week in Mumbai was also supportive of bond prices on Friday, analysts said.

The bond market traded in an abbreviated session, with the Securities Industry and Financial Markets Association recommending an early bond market close at 2 p.m. Eastern time (1900 GMT). (Reporting by Chris Reese; Editing by Andrea Ricci)