(/Updates to close) LONDON, Sept 23 (Reuters) - Euro area bond yields rose sharply on Thursday after a string of hawkish signals from major central banks, including the European Central Bank and the Bank of England. Norway’s central bank hiked rates, becoming the first major central bank to tighten policy in the wake of the COVID-19 crisis, while the Bank of England said the case of higher interest rates “appeared to have strengthened”. European Central Bank policymakers, meanwhile, are bracing for inflation to exceed the bank’s already raised estimates, paving the way for it to end its emergency bond purchases in March, sources involved in the discussion said. All of this came a day after the U.S. Federal Reserve, in a hawkish tilt, said it will likely begin reducing its monthly bond purchases as soon as November and signalled rate increases may follow more quickly than expected. This, together with stronger stocks and further signs of price pressures building, drove 10-year bond yields across the euro area up six to seven basis points. “More than anything, it (bond moves) is about the Fed because Jerome Powell was a lot... less ambiguous about the next step,” said Daiwa Capital Markets’ head of economic research Chris Scicluna, referring to the Fed President. Germany’s 10-year Bund yield rose as much as 7 bps on the day to -0.249%, the highest since early-July and the biggest one-day rise since February. Thirty-year yields also rose around six bps to 0.26% The selloff gathered pace after the Bank of England’s meeting, with two-year gilt yields soaring 10 bps to 0.38% -- their highest since March 2020. U.S. 10-year yields rose above 1.4% for the first time since mid-July, up 7 bps US10YT-=RR.Stocks rallied, meanwhile, calmed by China’s move to inject more cash into its financial system ahead of an $83.5 million Evergrande bond coupon deadline that could be the start of one of the world’s largest ever corporate defaults. “The Fed is clear that it’s on the tapering path, and there is some relief on Evergrande which is why stocks are rallying,” DZ Bank rates strategist Christian Lenk said, explaining the weakness in bond markets. IHS Markit’s euro zone Flash Composite Purchasing Managers’ Index, a good gauge of overall economic health, fell to a five-month low in August, while its U.S. equivalent also slipped to 54.5 from 55.4 the previous month However, sub-indexes tracking input costs jumped, hitting a two-decade high in Europe. U.S. data too showed a sharp pick up in input costs, adding to selling pressure in bonds. That suggests supply distortions - a primary driver of prices globally recently - are far from resolved and the trend of higher inflation could last for a few months to come. “Price pressures remain intense and sky-high energy prices suggest that these are unlikely to ease any time soon,” Jessica Hinds, Europe economist at Capital Economics, said in note. (Reporting by Dhara Ranasinghe; Editing by Hugh Lawson, Andrew Heavens and Jan Harvey)