Sept 28 (Reuters) - Euro zone bond yields rose to their highest since early July on Tuesday, tracking moves in U.S. Treasuries, as markets continued to fret about when central banks might tighten monetary policy.
Bond yields on both sides of the Atlantic have been on the rise since U.S. Federal Reserve policymakers last week projected policymakers are ready to raise rates in 2022 and that the bank is likely to begin reducing its monthly bond purchases as soon as November.
On Tuesday, U.S. 10-year Treasury yields jumped some 5 basis points and several other benchmark yields rose to their highest since the start of the COVID-19 pandemic in early trade. The moves also pulled euro zone bond yields, which are closely correlated to U.S. Treasuries, higher.
Germany's 10-year yield, the benchmark for the bloc, rose over 3 basis points to the highest since the start of July at -0.182%.
Italy's 10-year yield was up 4 bps, also to the highest since the start of July at 0.84%.
Other 10-year benchmark yields rose similarly.
"Central bank anxiety is keeping the pressure on bond markets which are struggling to defend key levels," said Michael Leister, head of interest rate strategy at Commerzbank.
Against that backdrop, close attention will be on European Central Bank policymakers speaking at the ECB's central bank forum, starting with ECB President Christine Lagarde at 1200 GMT.
U.S. Fed chairman Jerome Powell and Treasury Secretary Janet Yellen will testify at a congress hearing in the United States at 1400 GMT.
In the primary market, the Netherlands will raise up to 5 billion euros from the launch of a new bond due 2029 at auction. (Reporting by Yoruk Bahceli, editing by Timothy Heritage)