European yields moved broadly higher Tuesday, with Gilts leading the way and the 10-year gaining 5.4 basis points to 1.38%, wiping out yesterday’s losses and resuming the uptrend as the BoE heads for a rate hike. This comes despite softer than expected UK construction PMI. Spanish 10-year added another 1.0 basis points Tuesday as the Catalonia conflict continues to weigh on sentiment and street protests add to warnings from Moody’s that the situation is negative for Spain’s rating even if the most likely outcome still is that Spain will remain united. Eurozone PPI inflation came in higher than expected and added to pressure on bonds. In Asia, the Hang Seng was up 2.25%, the Nikkei 1.05% at the close, while the ASX 200 dropped -0.49%, as lower oil prices weighed on energy stocks and a sharp fall in QBE insurance, after the company detailed expected losses from recent hurricanes, dragged the index down.