LONDON, June 30 (Reuters) - Euro zone bond yields dipped on

Tuesday as oil prices hovered at around four-month lows, with

investors eyeing potential talks between Iran and the U.S. in

Qatar this week.

Germany's 10-year bond yield fell 1 basis point

(bp) to 2.893%, to trade just above its lowest in four months.

Yields move inversely to prices.

Germany's 2-year bond yield, which is sensitive

to ECB rate expectations, also slipped 1 bp to 2.532%.

The U.S.-Iran peace deal came under threat this weekend as

both sides traded attacks, but the White House said it is

sending envoys to Doha this week for further talks on the

agreement.

Brent crude oil, the global benchmark, was down 1.4%

at $72.35 on Tuesday. It has fallen to around its lowest levels

since the war started in late February as oil has begun to flow

again through the key Strait of Hormuz.

Bond traders were also watching euro zone June inflation

data, with figures from France showing prices rose less than

expected in June, at a 2% rate. Figures for the whole bloc are

due on Wednesday.

The ECB's annual monetary policy conference in Sintra,

Portugal, is also taking place this week, with Isabel Schnabel

among the policymakers due to speak on Tuesday.

Money markets continued to price in one more 25 bp rate hike

from the ECB this year, after it raised rates earlier this

month.

(Reporting by Harry Robertson; Editing by Muralikumar

Anantharaman)