TOKYO, Aug 2 (Reuters) - U.S. Treasury yields sank to

fresh multi-month lows in Asia on Friday, amid building worries

that the U.S. economy is headed for a hard landing.

A steep sell-off in Asian stocks, following a tumble on Wall

Street the day before, also stoked demand for Treasuries as a

haven.

The 10-year Treasury yield sank as much as 3.5 basis points

(bps) on Friday to reach 3.944% for the first time since early

February, after tumbling as much as 14 bps overnight to breach

the psychological 4% barrier.

The two-year yield dropped as much as 5.5 bps to

4.109%, the lowest since May of last year, extending Thursday's

more than 17 bps slide.

A surprise slump in U.S. manufacturing data overnight

ignited worries the Federal Reserve may be behind the curve,

raising the risk of a sharp economic downturn and putting

additional weight on a key monthly jobs report due later on

Friday.

Trader bets for a super-sized 50-basis-point interest-rate

cut at the Fed's next policy meeting in September jumped to

27.5% from 11.8% a day earlier, according to the CME Group's

FedWatch tool.

At its policy meeting that ended on Wednesday, the Fed left

rates unchanged, but Chair Jerome Powell pointed to September as

a potential start to cuts.

"This pricing suggests the market is moving away from a

soft-landing scenario to one where the Fed will need to take the

fed funds rate below a neutral setting and to stimulate," said

Chris Weston, head of research at Pepperstone.

"Perhaps (there's) even an element of front-loading upcoming

rate cuts, which is a far more worrying sign."