LONDON, March 10 (Reuters) - Allianz Global Investors

added to a position favouring longer-dated UK government bonds

last week, betting that the Bank of England will still cut rates

this year.

UK government bonds have been among the worst hit by a

global bonds selloff following the U.S.-Israeli war with Iran

that has sent yields sharply higher as investors price in the

risk of higher inflation and slash rate cut bets.

Ranjiv Mann, a senior portfolio manager at the firm, told

Reuters he added to a position favouring 30-year British bonds,

known as gilts, relative to U.S. Treasuries late last week.

"Clearly, in the short term, markets are questioning some of

that (Bank of England rates) pricing, but we think the

underlying backdrop still remains supportive for gilts relative

to other markets," Mann said, citing a weakening labour market,

easing inflation before the war and tight fiscal policy.

Investors' Bank of England rate cut bets have whipsawed.

Traders priced in a high chance of a rate hike this year on

Monday as oil soared, having previously expected a rate cut this

month. On Tuesday they saw around a 50% of a cut by year-end.