TREASURIES-Safe-haven buying pushes yields to 50-year lows

* Benchmark yields reach 50-year lows in safe-haven buying

* Global equity rout adds to safe-haven bid for bonds

* Investors question how much further yields can fall

By Chris Reese

NEW YORK, Dec 1 (Reuters) - U.S. Treasury debt prices rose on Monday in safe-haven buying that took benchmark yields to the lowest in 50 years as investors continue to fret over the skidding world economy.

U.S. stock futures fell on Monday morning, after a global equity rout that hit stocks in Asia and Europe, spurring investors to once again turn to lower-risk government debt.

"The bond market is just off record highs given concerns that the recession could be deep and long lasting and ongoing safe haven demand for Treasuries," said Action Economics LLC said in a note to clients.

Benchmark 10-year Treasury notes were trading 22/32 higher in price for a yield of 2.85 percent from 2.92 percent late on Friday. The yield, which moves inversely to prices, reached down to 2.83 percent, marking the lowest in at least five decades.

The 2-year note was trading 3/32 higher in price for a yield of 0.96 percent, down from 1.01 percent late on Friday and below the Federal Reserve's target rate for overnight lending between banks of 1.00 percent.

"Stocks have taken it on the chin this morning after a nice run last week and back-end Treasury yields have forged new all-time lows this morning too," said William O'Donnell, head of U.S. interest rate strategy at UBS Securities in Stamford, Connecticut.

But some investors cautioned U.S. Treasury yields may be running out of room to fall further, after being taken to record levels by investor need for low-risk assets in a flagging global economy and a persistent credit crisis.

"We have growing concerns, expressed ... for some weeks now, that the crowd in Treasuries is getting too thick," O'Donnell said.

Still, investors expect the Fed to continue to cut benchmark rates, with fed fund futures implying a 74 percent chance the central bank will slash its target rate by 50 basis points at a meeting on Dec. 16.

Investors are waiting for a speech from Fed Chairman Ben Bernanke on Monday for clues as to the direction of U.S. monetary policy and programs intended to prop up the financial industry.

Bernanke is scheduled to speak at about 1:30 p.m. (1830 GMT).

Five-year Treasury notes were trading 11/32 higher in price for a yield of 1.84 percent from 1.92 percent late on Friday, while the 30-year bond was trading two points higher for a yield of 3.34 percent from 3.44. (Editing by James Dalgleish)