Euro zone bond yields tick up as U.S. beats consensus

Germany's 10-year yield, the euro zone benchmark, was up a basis point to -0.29% by 1402 GMT, slightly above the seven-week low of -0.299% touched on Tuesday. Germany's 30-year yield, which fell 10 bps on Tuesday and neared negative territory for the first time since August, was up 2 bps to 0.03%.

Euro zone bond yields rose on Wednesday, though above-forecast U.S. inflation data for September failed to make much impact. U.S. consumer prices rose 6.2% year-on-year in October in the biggest jump since 1990, above the 5.8% a Reuters poll expected. Core inflation, which strips out volatile food and energy costs, also was higher than expected.

It followed overnight data, which showed Chinese producer prices accelerated more than expected in October. Those readings add to market concerns that inflation, which has been far above central banks' targets for months, may be less transitory than expected.

While U.S. Treasury yields rose 1-8 basis points across the curve, euro area bond yields rose only briefly. Germany's 10-year yield, the euro zone benchmark, was up a basis point to -0.29% by 1402 GMT, slightly above the seven-week low of -0.299% touched on Tuesday.

Germany's 30-year yield, which fell 10 bps on Tuesday and neared negative territory for the first time since August, was up 2 bps to 0.03%. In contrast to the large selloff on two-year U.S. Treasuries, German two-year yields were unchanged on the day.

"I think it's this classic (case) where the euro economy is less aligned with what's going on in the U.S. and the UK," said Lyn Graham-Taylor, rates strategist at Rabobank. "The euro zone has less of an inflation problem than the other two," he added.

Bond markets are calmer this week after recent wild swings. Yields first surged as money markets boosted wagers on European Central Bank rate hikes next year but fell after the Bank of England did not deliver an anticipated rate increase, moving money markets around the world. In debt auctions, Germany raised 2.462 billion euros from the re-opening of a 10-year bond.

Receiving less demand than the 3 billion euros Germany targetted, it led to another technical failure -- the third time in a row for a 10-year German auction. Elsewhere, Portugal raised 1 billion euros from re-opening bonds due 2031 and 2037.

(Editing by Timothy Heritage and Bernadette Baum)