GLOBAL MARKETS-Debt prices jump on credit worries, rumors

(Recasts with U.S. markets, adds byline; dateline previous LONDON)

By Herbert Lash

NEW YORK, March 10 (Reuters) - U.S. Treasury debt prices jumped and global stocks slipped on Monday as deteriorating credit conditions spooked investors and sparked rumors that Bear Stearns could be on the brink of bankruptcy.

Chairman Alan "Ace" Greenberg called speculation about Bear Stearns "totally ridiculous," but investors remained jittery amid a growing list of troubles slamming financial markets.

Oil hit a record high of $107 a barrel, reversing earlier losses, as investors sought oil as a hedge against a depressed dollar and concerns that inflation is on the rise.

U.S. Treasury debt prices extended gains, pushing yields on the benchmark 10-year note down to about 3.45 percent, and Euro-zone government bond futures jumped to their highest level in 15 months on the rumors concerning Bear Stearns.

Bear Stearns BSC.N, tumbled almost 14 percent to $60.34 before it pared nearly half those losses after CNBC television reported Greenberg's remarks.

Evidence of trouble popped up in many places.

Private equity and real estate company Blackstone Group LP said challenging business conditions and a write-down of bond insurer FGIC led to a huge fourth-quarter slump in earnings.