UPDATE 2-Mining, bank stocks lift London's FTSE 100

* Tesco says 1,600 jobs at risk from store changes

* FTSE 100 up 1.0%, FTSE 250 adds 1.1%
(Updates to close, replaces comment)

By Amal S and Anisha Sircar

Feb 1 (Reuters) - Mining and bank stocks supported London's
FTSE 100 on Tuesday as metal prices and bond yields rose ahead
of a widely anticipated Bank of England meeting later in the
week.

The blue-chip FTSE 100 index gained 1.0%, while the
banking sub-index rose 2.6%, tracking higher
yields amid expectations of interest rate increases.

Two-year yields on British bonds hit their
highest since 2011 amid expectations for a 50-basis-point rate
hike from the Bank of England, its second increase in a row.

"There seems to be renewed enthusiasm for some of the stocks
investors had taken flight from in fright about the impact of
higher interest rates on the value of future earnings," said
Hargreaves Lansdown analyst Susannah Streeter.

Miners Anglo American, Rio Tinto and
Glencore were among the top gainers on the London
blue-chip index, aided by stronger copper and gold prices.

"Miners have again been the stalwarts of the index, helped
by a raft of robust commodity prices," Streeter added.

The FTSE 100 has steadily outperformed its peers in the
developed world due to a stronger exposure to banking stocks,
which tend to thrive in a tighter monetary policy environment.

The domestically focused mid-cap index was up 1.1%,
with asset managers offering the biggest boost.

Soft drinks A.G. Barr gained 1.0% after raising its
annual profit forecast and saying annual revenue was set to top
pre-pandemic levels.

Virgin Money UK rose 0.1%, after the British
challenger bank said credit card spending was back to
pre-pandemic levels thanks to pent up demand, while rising
interest rates helped lift its margin forecast for the year.

Debt-laden Cineworld fell 4.0% after it said it had
started talks with former shareholders of its U.S. business
Regal Entertainment over a potential rescheduling of the British
cinema operator's payment obligations.

Tesco, Britain's biggest retailer, climbed 1.0%
after saying 1,600 roles were at risk of redundancy due to
operational changes at stores.
(Reporting by Amal S in Bengaluru; Editing by Alexander Smith,
Shailesh Kuber, William Maclean)