UK shares snapped a three-day losing streak on Thursday, with global equities breathing a sigh of relief as a recent rout in bonds eased, though shares of Metro Bank slumped following reports of an urgent capital raise.

The benchmark FTSE 100 index gained 0.2% by 0717 GMT and the domestically focused FTSE 250 index opened 0.4% higher, recovering from a near one-year low hit in the previous session.

The benchmark U.S. 10-year bond yield retreated from 16-year highs while the U.S. dollar softened, relieving investor anxiety.

Metro Bank shares slumped 26.7% after press reports said the British mid-sized lender is in talks for an urgent capital raise to bolster its balance sheet.

People familiar with the situation told Reuters that Metro Bank was exploring options to raise as much as 600 million pounds ($728.52 million).

Imperial Brands gained 1.4% after the cigarette maker announced a $1.34 bln share buyback programme and reaffirmed its annual forecast. (Reporting by Khushi Singh in Bengaluru; editing by Eileen Soreng)