May 29 (Reuters) - European shares declined on Wednesday as rising bond yields globally spurred concerns of interest rates staying elevated for longer, even as investors awaited more economic data to firm up bets on rate cuts.

The pan-European STOXX 600 index fell 0.3% by 0708 GMT, with nearly all markets and sectors in the region trading in the red.

Oil and gas was the only gainer among sectors in early trade, rising 0.8%, tracking higher oil prices.

The yield on U.S. 10-year Treasuries rose to 4.5639%, while Germany's 10-year bond yield spiked to a one-month high and was last at 2.627% as traders digested the unexpected improvement in U.S. consumer confidence on Tuesday.

Investors will now shift their focus to the inflation data from Germany later in the day, which is expected to show some moderation on a monthly basis in May.

Shares of BHP Group were flat as it sought more time to engage with Anglo American over its 38.6 billion pounds ($49.20 billion) offer. Anglo American's stock slid 1.6%.

Shares of Royal Mail's parent company International Distributions Services jumped 3.1% as it agreed to a 3.57 billion pound ($4.55 billion) formal takeover offer by Czech billionaire Daniel Kretinsky.

Delivery Hero fell to the bottom of STOXX index, down 3.5%, after Morgan Stanley cut its rating to equal-weight from overweight. (Reporting by Shubham Batra in Bengaluru; Editing by Varun H K)