easyJet leads Britain's FTSE lower as global bond rout resumes

* Appetite for equities knocked by global bond sell-off

* Airline easyJet issues downbeat outlook

* Lloyds rises after Britain sells more shares in bank

By Sudip Kar-Gupta

LONDON, May 12 (Reuters) - Britain's top share index slid lower on Tuesday, weighed down by airline easyJet as a global bond sell-off hit markets and ensured that optimism after a decisive British election was short-lived.

The blue-chip FTSE 100 index fell 1.6 percent to 6,917.48 points. The FTSE hit a record high of 7,122.74 points last month and remains up around 5 percent since the start of 2015, having risen sharply at the end of last week after the Conservative Party won an outright majority in the election.

EasyJet slumped 8.3 percent, the worst performer on the FTSE 100. The airline's outlook was hit by a difficult April, with air traffic control strikes impacting profits.

Among stocks gaining ground, credit data company Experian rose 1.1 percent after the company said it expected stable margins, despite reporting lower profits.

Lloyds also edged up after Britain sold another 500 million pounds ($784.1 million) of shares in the bank.

Nav Banwait, chief market strategist at Thames Capital Markets, said the longer-term outlook for the FTSE was positive, with the market helped by signs of a British economic recovery such as data on Tuesday that showed that industrial output grew at its fastest rate in six months in March.

However, he added that unease in financial markets caused by the global bond market sell off could now send the FTSE lower.

"We're anticipating a move down to 6,900 points, but we will be looking to cautiously buy into the market here as we expect the FTSE back up at 7,100 points in the next two weeks," he said.

Others were more cautious due to the bond market jitters.

"I'm looking for a five to 10 percent correction over the next month or two," said Kyri Kangellaris, director of Horizon Stockbroking. ($1 = 0.6377 pounds) (Additional reporting by Alistair Smout)