SINGAPORE, July 15 (Reuters) - Long-dated U.S. bond

yields rose on Monday as investors wagered a shooting attack on

presidential candidate Donald Trump increased his chances of

victory and the likelihood of policies that would drive up

government debt and stoke inflation.

Ten-year yields ticked five basis points (bps)

higher to 4.237% in early London trade. Thirty-year yields

rose nearly 6 bps to 4.458%, while two-year yields

were only 1.4 bps higher to 4.476%.

Yields rise when bond prices fall. The closely-watched gap

between two-year and 10-year yields narrowed to -23.5 bps, while

the 2s-30s gap was close to turning positive.

Trump, 78, was holding a campaign rally in Pennsylvania

when shots rang out, hitting his right ear and leaving his face

streaked with blood. His campaign said he was doing well.

Investors have tended to react to the prospect of second

Trump presidency by pushing yields higher, in part on the

assumption his policies would add to inflation and debt.

Proposals to levy tariffs on imports would push prices

higher while eating into consumer spending power. Meanwhile,

restrictions on immigration could tighten the labour market and

put upward pressure on wages.

"Perhaps we see the market begin projecting longer-term

rates higher, and anticipating lower short-term rates, because I

think it's clear that as president, Trump would push for lower

rates right away," said Jack Ablin, CIO at Cresset Capital.

Cash bonds had been untraded in the Asia session due to a

public holiday in Japan.