EURO GOVT-Bunds push higher as stocks tumble

LONDON, Oct 10 (Reuters) - Euro zone government bonds rose on Friday, with short-dated yields hitting their lowest in over 2-1/2 years as stock markets around the world plummeted on fears the financial crisis will lead to a global recession. But traders said gains in safe-haven fixed income markets were capped, with Japanese government bonds actually falling over a point, as investors rushed to secure cash and as the market weighed the funding implications of the raft of measures announced to support the global banking system. Meanwhile, the world's economic powers came under pressure to act boldly to halt the distress as panic selling and anxiety spread. For a wrap of the day's events so far see [nLA639292]. At 0746 GMT, December Bund futures were 46 basis points higher at 116.57. Two-year bond yields were 14.7 basis points... [read full story]