LONDON, Feb 12 (Reuters) - German bond yields traded at

their highest in over a week on Wednesday after rising by their

most in four months in the previous day as markets digested

tariff developments, comments from the U.S. Federal Reserve

chair, and a rise in energy prices.

The key data focus on Wednesday will be U.S. consumer price

index inflation, due at 1330 GMT.

Germany's 10-year bond yield, the benchmark for

the euro zone, traded 1 basis point (bp) higher at 2.438% on

Wednesday. It earlier touched 2.442%, the highest since Feb. 3.

Fed Chair Jerome Powell said on Tuesday the central bank was

in no hurry to cut rates again thanks to a strong economy.

U.S. President Donald Trump's trade advisers were finalising

plans on Wednesday for the reciprocal tariffs he has vowed to

impose on every country that charges duties on U.S. imports.

Italy's 10-year yield was little changed​ at

3.54%, and the gap between Italian and German bond yields

narrowed 1 bp to 109 bps.

Germany's two-year bond yield, which is more

sensitive to European Central Bank rate expectations, was 1 bp

higher at 2.09%.