Euro zone bond yields inch up with tariffs in focus

March 25 (Reuters) - Euro zone bond yields crept higher on Tuesday ahead of a German business sentiment survey later in the day and as traders saw signs of flexibility in U.S. tariffs due next week.

U.S. President Donald Trump indicated on Monday that not all of his threatened levies would be imposed on April 2 and that some countries may get a break.

Markets saw that as a sign of flexibility, leading to a rally in U.S. stock markets on Monday and a selloff in U.S. bonds. Yields move inversely to prices. US/

German 10-year bond yield DE10YT=RR, the benchmark for the euro zone bloc, rose 1.9 basis points to 2.792%.

Italy's 10-year yield IT10YT=RR was higher by 1.1 basis points at 3.892%, and the gap between the Italian and German 10-year bonds DE10IT10=RR stood at 109 bps.

Investors also await the Germany business climate survey for this month due from the Ifo institute at 0900 GMT.

The data will provide a gauge of business morale after Germany passed a landmark bill to massively boost infrastructure and defence spending in Europe's largest economy, a move seen as a positive for euro zone growth in the next few years.