* Dollar dips, bond yields up after Trump attack

* PredictIT shows increased chance of Republican win

* Crypto stocks higher

NEW YORK, July 15 (Reuters) - World stock indexes and Treasury yields rose on Monday while the dollar dipped as investors weighed the prospect of Republican Donald Trump winning the U.S. presidential race after he survived an assassination attempt over the weekend.

Long-dated U.S. bond yields rose on the assumption that Trump policies would add to government debt and inflation, while crypto stocks rallied along with bitcoin. Trump has presented himself as a champion of cryptocurrency.

Investors have viewed a Trump win as likely to mean more tax cuts and less regulation. The S&P 500 energy sector was up more than 2%.

On online betting website PredictIt, contracts for a Trump election victory traded at 68 cents, up from 60 cents on Friday, with a potential payout of $1. Contracts for a Biden victory were at 26 cents.

"It's very short-term thinking with respect to the polls and what it will do for his candidacy but also for the market," said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts. "We are in an election year, and when you look at historical election year results, they are generally very good."

The motive behind a 20-year-old gunman's attempt on the life of Trump remained a mystery, with the suspect having been killed and the FBI unable to determine an ideology that may have been behind the attack on Saturday.

Investors also digested comments from Federal Reserve Chair Jerome Powell, who said on Monday the three U.S. inflation readings over the second quarter of this year do "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion.

The Dow hit a record high early, helped by some upbeat earnings results including from Goldman Sachs, which was up 2%.

The Dow Jones Industrial Average rose 278.85 points, or 0.70%, to 40,279.75, the S&P 500 gained 23.21 points, or 0.41%, to 5,638.56 and the Nasdaq Composite gained 89.73 points, or 0.49%, to 18,488.17.

MSCI's gauge of stocks across the globe rose 0.72 points, or 0.09%, to 829.27. The STOXX 600 index fell 1.02%.

Dour updates from British luxury group Burberry and watchmaker Swatch Group raised questions about consumer confidence.

U.S. retail sales data due on Tuesday was likely to be closely watched for clues on how consumers are faring.

The dollar index, which measures its performance against a basket of currencies, fell 0.07% at 104.22, with the euro down 0.09% at $1.0896. Against the Japanese yen , the dollar strengthened 0.03% at 157.93.

Bitcoin gained 10.41% to $63,526.79.

The yield on benchmark U.S. 10-year notes rose 4.6 basis points to 4.233%, from 4.187% late on Friday.

Oil prices were down slightly, with worries about demand in top importer China offseting support from OPEC+ supply restraint and ongoing tensions in the Middle East.

U.S. crude lost 30 cents to settle at $81.91 a barrel and Brent fell 18 cents to $84.85.

(Additional reporting by Isla Binnie in New York, Iain Withers in London and and by Lisa Mattackal and Ankika Biswas in Bengaluru and by Wayne Cole in Sydney; Editing by Christian Schmollinger, Jamie Freed, Arun Koyyur, Susan Fenton, Will Dunham and Tomasz Janowski)