Sept 28 (Reuters) - Euro zone yields hit multi-year highs on Wednesday, with the German real yield in positive territory for the first time since June 2015 on monetary tightening expectations and concerns about growing bond supply due to more public spending.
European Central Bank officials kept their hawkish rhetoric, showing no signs of wanting to halt the rout in the bond market.
Meanwhile, yields on 10-year British gilts rose 4.5 basis points after jumping 119 basis points in just four sessions, the sharpest such move since at least 1979, in response to new finance minister Kwasi Kwarteng's borrowing plans.
Germany's 10-year government bond yield, the benchmark of the bloc, fell 1 bps to 2.24% after hitting a fresh nearly 11-year high at 2.31%.
Germany's 10-year inflation-linked yield rose 2 bps to -0.02%, after hitting its highest since June 2015 at 0.02%.
"Rising yields in part reflect the unwinding over the last month of expectations for an early pivot in central bank, and particularly Federal Reserve, policy," said Mark Haefele, Chief Investment Officer, UBS Global Wealth Management.
"But we think the rise in longer-term yields may not accurately reflect the risks facing the economy," he added.
Benchmark U.S. 10-year Treasury yield hit its highest since October 2008 at 4.019% in early London trade as Federal Reserve held firm in their hawkish stance.
Italy's 10-year bond yield was up 1 bps to 4.43%, after hitting a fresh high in more than 9 years at 4.85%, with the spread between Italian and German 10-year yields at 252 bps.
Investors focused on Italy’s budget after the centre-right coalition led by Giorgia Meloni won a clear majority in Sunday's elections, inheriting one of the euro zone's biggest debt burdens at a time of rising rates and slowing economic growth.
Mario Draghi's outgoing government will unveil new growth and public finance estimates this week in its Economic and Financial Document (DEF), which will form the framework for the 2023 budget to be examined by European Union.
The news that the Nord Stream gas pipeline from Russia to Europe had suffered damage propped up gas prices, which analysts see as a proxy of future inflation.
The Dutch October gas price reached 210 per megawatt-hour (MWh) on Wednesday.
The EU will step up protection of its energy infrastructure following the incidents that caused the leaks of the Nord Stream pipelines, EU foreign policy chief Josep Borrell said on Wednesday. (Reporting by Stefano Rebaudo, editing by Angus MacSwan)
