TREASURIES-Long dated Treasury yields hit new multi-month highs

LONDON, May 22 (Reuters) - U.S. long-dated bond yields nudged up to new multi-month highs on Thursday, before stabilising, a day after soft demand for a sale of 20-year bonds underscored market worries about the United States' increasing debt burden.

Investors are also watching a sweeping tax and spending bill that is expected to worsen the fiscal outlook. The bill cleared a crucial hurdle on Thursday, and will be voted on later in the day by the House of Representatives.

The U.S. 10 year Treasury yield US10YT=RR rose as high as 4.613% on Thursday, its highest since mid-February. In early London trade, it was last steadier at around 4.58%.

Super long-dated bonds are under even more pressure and the U.S. 30-year yield reached 5.108%, its highest since October 2023, US30YT=RR and the 20-year yield hit 5.126%, its highest since November 2023. US20YT=RR

"With the U.S. tax bill making its way through the House, scrutiny of the country’s fiscal trajectory will remain a headwind for long end rates," said Benjamin Schroeder, senior rates strategist at ING in a note to clients.

He said weaker auction results would only provide occasions to push rates higher.

The U.S. is at the centre of a sell off in global government bonds, but is not alone, longer dated yields are also rising in Japan, the euro zone, and Britain. JP/ GVD/EUR GB/