TREASURIES-U.S. 10-yr yield rises toward 1.5% level last seen in June

U.S. Treasury yields resumed their march higher on Monday, with 10-year yields hitting their highest level in three months as concerns that the Federal Reserve is shifting towards a more hawkish policy continued to unnerve bond markets.

In European trade, the 10-year Treasury yield rose to as high as 1.497% and were last up almost three basis points on the day.

They rose almost 9 bps last week, their fifth week of gains and the biggest weekly jump since March, as investors reacted to a more hawkish-than-anticipated shift by major central banks including the U.S. Federal Reserve and the Bank of England.

Across the curve, most other Treasury yields were 2-3 bps higher on the day on Monday with 30-year yields rising above 2% for the first time since mid-August.

Analysts said the continued selloff in bond markets was likely also driven by position adjustments and a reassessment of the inflation outlook given signs that price pressures could prove stickier than anticipated.

"We had the hawkish communication from the Fed and BoE last week and there's also a reappraisal of the outlook and a recognition that the expectation for stable rates was wrong," said ING senior rates strategist Antoine Bouvet. (Reporting by Dhara Ranasinghe; editing by Sujata Rao)