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* FTSE 100 up 0.5 pct
* Oil stocks lead gains
* Bond proxies recover as yields ease
* Bookmakers on the backfoot over FOBT limit worries
By Kit Rees
LONDON, April 24 (Reuters) - The UK's top share index roseon Tuesday, remaining at seven-week highs as oil stocks jumpedand pressure on bond proxy-type stocks eased.
The blue chip FTSE 100 index was up 0.5 percent at7,433.90 points by 0850 GMT, while mid caps were down0.2 percent.
The FTSE was set for its sixth day of straight gains, itslongest winning streak in nearly one year.
The energy sector was the biggest contributor to the bounce,adding nearly 13 points to the FTSE as shares in BP andRoyal Dutch Shell climbed 1.7 percent and 0.6 percentrespectively.
Energy stocks have been buoyed by a resurgent oil price,which is up at its highest levels since late 2014 on the back ofexpectations that supplies will tighten with demand strong.
Joining oil stocks at the top of the FTSE were utilitycompanies United Utility Group and Severn Trent,whose shares rose about 1.5 percent as concerns over higher bondyields took a backseat.
Shares in 'bond proxy' stocks such as consumer staples andutilities came under pressure on Monday as the yield on the U.S.10-year Treasury approached the psychologically significant 3percent level. Rising bond yields can make these stocks'reliable dividend streams less attractive to some investors.
However, those concerns eased on Tuesday as focus shifted toupcoming earnings reports, with UK banks set to be in thespotlight later this week.
"As the week now pans out, we're going to have first quarternumbers from Lloyds, Barclays and RBS... so if there is to be any sense of optimism coming out of theQ1 earnings season, clearly financials are going to be part ofthat," said Richard Hunter, head of markets at interactiveinvestor.
Shares in bookmaker Paddy Power Betfair brought upthe rear on the FTSE with a 3.9 percent fall, while mid cappeers William Hill dropped 13.8 percent and GVC Holdingsfell nearly 7 percent following reports that the UKgovernment will cut the top limit on fixed odds bettingterminals (FOBTs) to 2 pounds sterling.
"While this is bad news for the multi-channel operators, wesuspect the market may be equally concerned by the suggestion inthe same article that any tax shortfall could be offset bygaming tax increases elsewhere," analysts at Davy said in anote, referring to an article in The Times.(Reporting by Kit Rees; Editing by Jon Boyle)
BP (BP.)