Euro zone yields nudge higher, long-dated bonds under pressure

LONDON, May 21 (Reuters) - Euro zone government bond yields edged higher on Wednesday, shaped by the broad global mood, with Treasury yields rising on worries about the U.S. fiscal position, super-long Japanese yields at record levels, and UK inflation above expectations.

Germany's 10-year yield rose 2 basis points to 2.62%, DE10YT=RR as the euro zone benchmark underperformed Germany's rate-sensitive two-year yield which was fractionally higher at 1.85%. DE2YT=RR

Long-dated bond yields are rising around the world, and the 10-year U.S. Treasury yield was 4 bps higher at 4.52% on Wednesday, close to Monday's one-month high, on concerns that a tax-cut bill being debated in Congress will worsen the U.S. budget deficit at a faster pace than previously expected. US/

Japanese super-long yields have also moved sharply higher this week. US/

Italy's 10-year yield, seen as the benchmark for the euro zone periphery, was nearly 2 bps higher at 3.63%. IT10YT=RR