SINGAPORE- 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.

(Reporting by Tom Westbrook; Editing by Kim Coghill)