GLOBAL MARKETS-Global bond rout deepens, oil hits year's high

* U.S., European bond yields rise to fresh 2015 highs

* Oil hits 2015 peak on lower U.S. inventory, Middle East tension

* Euro reaches 10-week high against dollar

* U.S., European shares trade lower (Updates market action, changes dateline, previous LONDON)

By Richard Leong

NEW YORK, May 6 (Reuters) - A global selloff in government bonds deepened on Wednesday as long-term U.S. and European borrowing costs reached their highest level this year, spreading anxiety into stock and other markets.

The standoff between Greece and its lenders, together with disappointing data on private U.S. jobs growth, kept a lid on the more than a week-long rise in benchmark U.S. and German yields, underpinned by reduced worries about deflation in the euro zone.

"If the rise in yield resulting from dumping Bunds is compounded into other G10 government bonds by possible signs of oil-driven reflation currents, then stocks will have to take notice," said City Index Chief Markets strategist Ashraf Laidi in London.

Oil prices hit their highs on the year on shrinking U.S. inventory and conflict in the Middle East. ]

The month-long rally in oil boosted energy stocks but was not enough to stem further losses on Wall Street and European equities.

Diminshed worries about the euro zone's economy stoked the bounce in the euro, which hit a 10-week high against the dollar. The euro was up 1.5 percent at $1.1346. The dollar index was down 1.2 percent at 93.985, retreating from a one-week high of 95.946.

Germany's 10-year yield hit a 2015 high just under 0.6 percent. The yield has more than tripled in a week and risen 10-fold in just three weeks.

Benchmark 10-year yields on Spanish, Italian and UK government bonds also hit year-highs before retreating back below Tuesday's close.

The 10-year U.S. Treasury yield touched 2.230 percent, within three basis points of its 2015 peak. It retreated from its session high after payroll processor ADP said U.S. companies added 169,000 workers in April, 31,000 fewer than analysts forecast.

A broad bounce in commodities saw oil and copper prices rise to their highest levels so far this year.

Brent crude was last up $1.57, or 2.33 percent, at $69.09 a barrel. U.S. crude was last up $1.46, or 2.42 percent, at $61.86 per barrel.

Copper futures in London fell 1.3 percent to $6,396 a tonne, retreating from their highest since mid-December set on Tuesday.

The rise in commodity prices was unable to stop the reversal of stock bets linked to a protracted period of disinflation in Europe. Traders now worry the European Central Bank will not need to provide additional stimulus given nascent signs of price stability in the region.

Greece's debt situation remained a worry even as the cash-strapped nation made a small interest payment to the International Monetary Fund on Wednesday.

In early U.S. trading, the Dow Jones industrial average fell 66.23 points, or 0.37 percent, to 17,861.97, the S&P 500 declined 5.62 points, or 0.27 percent, to 2,083.84 and the Nasdaq Composite decreased 16.53 points, or 0.33 percent, to 4,922.80.

Europe's index of leading 300 stocks fell 0.5 percent at 1,546.70 points after touching a two-month low of 1,543.55.

The MSCI world equity index, which tracks shares in 45 nations, fell 0.08 percent to 434.88.

(Additional reporting by Jamie McGeever, Marius Zaharia in London, and Saikat Chatterjee in Hong Kong; Editing by Toby Chopra and Nick Zieminski)