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* Bond worries resurface
* Entain falls as it withholds dividend
* Vistry Group rises on upbeat outlook
* FTSE 100 down 0.7%, FTSE 250 off 0.4% (Adds comment, updates prices)
By Shivani Kumaresan
March 4 (Reuters) - London's FTSE 100 fell on Thursday, dragged down by miners on concerns about rising bond yields and volatility in U.S. markets, while insurer Aviva rose after selling its remaining businesses in Italy.
The blue-chip FTSE 100 index .FTSE slid 0.7%, with mining stocks, including Rio Tinto RIO.L , Anglo American AAL.L and BHP BHPB.L , leading declines.
Resurgent worries about rising U.S. bond yields hit global shares as investors waited to see if Federal Reserve Chair Jerome Powell will address concerns about the risk of a rapid rise in long-term borrowing costs. MKTS/GLOB
"We don't think Rise in yields necessarily are bad for equity markets as long as they reflect expectation of very strong growth and so they are driven by inflation compensation rather than rising really," said Simona Gambarini, markets economist at Capital Economics.
She added that though there are some expectations of tightening in bond market pricing which might be weighing on the stock market, those expectations will not be realized and, therefore, the stock market will start gaining again.
Bank of England policymaker Silvana Tenreyro said there was no good evidence that cutting interest rates below zero would, past a certain point, weaken Britain's economy rather than boost it. FTSE 100 has recovered more than 35% from a coronavirus-driven crash last year, but the possibility of rising inflation and higher bond yields has rattled sentiment.
The domestically focused mid-cap FTSE 250 index .FTMC fell 0.4%.
Ladbrokes (LON:LCL) owner Entain ENT.L fell 2.1%, as it withheld declaring a dividend. It was expecting online volumes to ease when shops re-open after a surge during lockdowns. Aviva AV.L rose 3.0%, to the top of blue-chip index after selling its remaining businesses in Italy, as it tries to focus on its key markets of Britain, Canada and Ireland. Vistry Group VTYV.L rose 2.3%, after an upbeat forecast and resumption of dividend.