Euro zone bond yields fall before inflation data, ECB forum

LONDON, July 1 (Reuters) - Euro zone government bond yields fell slightly on Tuesday but remained within their recent range as markets awaited inflation data from the bloc that is expected to show a slight uptick in price pressures.

Germany's 10-year bond yield DE10YT=RR, the benchmark for the euro area, was last down 2 basis points at 2.58%. The trading range for bund yields during June was the lowest since 2021, according to Commerzbank.

More timely consumer prices data from the largest countries in the euro zone have been mixed. Inflation in Spain and France increased slightly, Italy's was in line with the prior month, while there was a small downtick in German figures released on Monday.

Inflation for the region as a whole is expected at 2% in June, the European Central Bank's goal, up from 1.9% the previous month, according to economists polled by Reuters.

The ECB, having lowered borrowing costs eight times since the middle of last year, has recently signalled it intends to pause rate cuts with inflation back at target.

ECB President Christine Lagarde on Tuesday said the euro zone is set to face increasing inflation volatility as she kicked off the ECB Forum on Central Banking in Sintra, Portugal.

The event today includes a panel discussion with Lagarde alongside the heads of the Federal Reserve, Bank of Japan, Bank of England and Bank of Korea.

Italy's 10-year bond yield IT10YT=RR was down 2 bps at 3.474%, keeping the spread between Italian and German 10-year yields DE10IT10=RR steady at 89 bps.