UPDATE 1-China onshore bonds jump amid U.S.-China trade tensions

(Adds bond prices, market participant reactions, more detail)

SHANGHAI, March 23 (Reuters) - China's onshore bond market surged on Friday in a flight to safety amid growing fears of a possible U.S.-China trade war.

"(Yields) dropped a lot at the open, buyers are out in force," said a trader at an Asian bank.

The yield on 10-year Chinese government bonds fell about 5 basis points to 3.70 percent, traders said.

The highly liquid 10-year China Development Bank bonds also saw their yield drop, falling 14 basis points to 4.68 percent.

"A trade war is good for bonds," said a fixed-income portfolio manager in Shanghai, adding that he expects the yield on 10-year Chinese treasury bonds to fall toward 3.5 percent in the near term, possibly in the second quarter.

The price of 10-year treasury futures for June delivery , the most-traded contract, rose as much as 0.91 percent in early trade to 94.225.

As of 0155 GMT, the contract was trading 0.58 percent higher at 93.915.

(Reporting by Andrew Galbraith and Fang Wu; Editing by Paul Tait and Sunil Nair)