* JGB futures hit 1-mth high, foreign funds cover shorts

* JGBs retain momentum from Thursday's robust 5-yr sale

* Cash bonds also bought, 2-yr/10-yr spread tightens further

By Shinichi Saoshiro

TOKYO, Nov 13 (Reuters) - Japanese government bond futures rose to a one-month high on Friday, riding on upward momentum from the previous day's robust five-year auction results, with speculators covering short positions as recent bearish sentiment receded further.

JGB futures have surged well more than a full point over the past three days, and got a big lift on Thursday after the well-received five-year debt sale helped allay some concerns over Japan's fiscal situation.

Market players said foreign hedge funds and commodity trading advisers continued to cover short positions in JGB futures on Friday, adding that some of the funds were selling stock futures as well.

"Short covering in futures could run a little longer as there appears to be more positions that could be covered. The trend is pointing towards lower bond yields as the Nikkei has stalled and Treasuries have gained," said Hidenori Suezawa, chief strategist at Nikko Cordial Securities.

Speculators had placed bets in the futures and derivatives markets that fiscal concerns would throw the JGB market into turbulence as Japan, already the most indebted industrialised nation, was seemingly poised to further increase debt issuance.