UPDATE 1-UK's FTSE 100 ends marginally higher as bond yields resume their rise

UK's blue-chip FTSE 100 ended slightly ​higher on Tuesday as the global move ​higher in government bond yields hit ‌sentiment, ​overshadowing optimism stemming from labour market data that eased worries of an immediate rate hike.

The blue-chip FTSE 100 index closed 0.1% higher at 10,330.5 ‌points after rising as much as 0.8% earlier in the day. The midcap FTSE 250 reversed its initial gains to fall 0.2%. * Data showed Britain's employers reined in their hiring and posted fewer job vacancies ‌in April, prompting investors to cut their bets on Bank of England interest rate hikes.

* "For the ‌MPC, this sharpens the policy tension: while energy-driven inflation risks dominate near term, the labour market backdrop is already loosening, increasing the risk that policy remains too tight and entrenches unnecessary weakness," said Jefferies economist Modupe Adegbembo. * Traders expect a ⁠29.1% chance ​of a rate hike ⁠at the June meeting, according to data compiled by LSEG.

* Long-dated government bond yields resumed their uptrend on Tuesday as ⁠the inflationary impact of the Iran war unsettled investors. * Yield on both the 10-year gilt and the 30-year gilt ​were higher on the day after inching lower in the last session.

* Most FTSE 350 sectors ⁠trended higher, with medical equipment and services and personal goods among the top gainers. * A drop in metal prices hit ⁠miners ​listed in the UK, with the sector for precious metal miners sliding 3.7%, and industrial metal miners down 2.7%.

* Meanwhile, political uncertainty still remained in focus as Keir Starmer earlier this week ⁠reiterated that he would remain at the helm, but several of his Labour Party's lawmakers have called for ⁠him to quit. * Among ⁠single stocks, IG Group rose 10.5%, the biggest gainer on the FTSE 100, after it raised its annual and medium-term revenue forecasts for the second ‌time this ‌year.

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