(You can call it a 'correction' if you prefer...but it might turn out to be the beginning of quite a crash)

Japan is now below the psychological 17,000 mark...

 TOKYO, March 5 (Reuters) - Japanese government bonds rose on Monday, with lead futures prices climbing towards a three-month high, as investors took their cue from a rally in U.S. Treasuries and slump in the Tokyo's Nikkei share average.

Sentiment for JGBs was also aided after data on Friday showed nationwide core consumer prices were flat in January, reinforcing expectations the Bank of Japan will take its time in rising interest rates further.

The Nikkei average <.N225> dropped 2 percent in early trade, falling below the key psychological 17,000 level for the first time since January. It hit a seven-year closing high of 18,215.35 on Feb. 26.

Tokyo share prices look set to face heavy sell-offs as investors pull their money out of global equities markets. A sharp yen <JPY=> appreciation as a result of unwinding of yen carry trades is also a negative incentive for Japanese exporters' share prices as it eats into profits when earnings from abroad are brought home.

"A growing view that recent falls in share prices may not be just a temporary correction is giving the JGB market support," said Masuhisa Kobayashi, chief JGB strategist at Barclays Capital.