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.