LONDON, May 12 (Reuters) - German Bund yields rose on Tuesday as a global sell-off in bond markets, which has surprised investors and puzzled analysts since the end of April resumed.
Analysts have said in the past two weeks that the sell-off was partly sparked by an uptick in inflation expectations amid a rise in oil prices and uneasiness with record low yields.
Low market liquidity caused by the European Central Bank hoovering up bonds under its quantitative easing programme and regulations limiting market makers' ability to warehouse bonds is said to have exacerbated the move.
But the full picture is far from clear. Yields continue to rise despite oil prices dipping, investors are selling German Bunds despite renewed worries over Greece.
Ten-year Bund yields were 7 basis points higher at 0.66 percent. Bund futures were down 83 ticks at 153.30, while Italian BTP futures fell 136 ticks to 133.84. U.S. 10-year T-note yields traded at their highest levels since December at over 2.30 percent.
(Reporting by Marius Zaharia, editing by Nigel Stephenson)